David Stockman, former director of the Office of Management and Budget in the Reagan administration, insists that the housing market outlook is not as cheery as some say.
“I would say we have a housing bubble … again,” Stockman told the Daily Ticker. “We don’t have a real organic sustainable recovery, because in a world of medicated money by the central bank, things aren’t what they appear to be.”
Stockman pointed to artificially low interest rates and speculation in the real-estate market as culprits.
“It’s happening in the most speculative subprime markets, where massive amounts of ‘fast money’ is rolling in to buy, to rent, on a speculative basis for a quick trade,” he said. “And as soon as they conclude prices have moved enough, they’ll be gone as fast as they came.”
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