Recent reports on U.S. housing show a market enjoying a robust recovery, one strong enough to generate fears of another bubble. On the flip side, a conventional critique is the housing market is being driven largely by institutional investors vs. private buyers, as cited here yesterday by The Guardian’s Heidi Moore and today in NYT’s Dealbook.
In other words, the recovery is illusory and another consequence of the Fed's easy money policies, which favor Wall Street speculators vs. Main Street America.
Ian Shepherdson, chief economist at Pantheon Macroeconomics, addresses both concerns in the accompanying video.
To the idea the housing market is being driven largely by institutional investors vs. private buyers, the economist has a counterintuitive response: “I’m hasty to be dismissive of the investors,” Shepherdson says. “They got the market going and I’m grateful for them.”
Similarly, he turns worriesRead More »from “Unwavering” Housing Bull “Grateful” for Wall Street Buyers