Tuesday, August 24, 2010

Thank You For Smoking = National Association of Realtors

So the report just came out for July sales, and sure enough, sales volume is lower. However, the National Association of Realtors (NAR), came out with a nice little spin, "July Existing-Home Sales Fall as Expected but Prices Rise." Look at that, prices rose!!!

Unfortunately, they are horrible spinmasters. They didn't get any of the Nick Naylor gift of bullshitting people from "Thank You For Smoking" (shown above with "Cancer Boy").

American people are not really stupid enough to believe the stuff that comes out of NAR. Everybody knows there's a lot of inventory being held back by banks, that "extend and pretend" is government policy in the form of PR stunt known as HAMP (victor = banks and our grandchildren, loser = delinquent, over-extended homeowner, sorta*), that we face another 10 years of bad loans that need to be cleared off the books, working their way through the system, ever so slowly.

*Delinquent, badly underwater homeowners are kind of the "loser" until they fully understand that they can just keep re-defaulting on a HAMP loan and then play the "contest the foreclosure" charade then game the Bankruptcy system by filing Chapter 13 at least four times, stretched out over 3-5 years. Essentially, living in the house rent-free. Hey, gotta do what you gotta do. They're a loser until they realize they're a pawn, and actually can feel like a winner once again.

Anywho, the NAR President, a Realtor from Tucson, Vicki Cox, gave the usual cheerleading comment, "“Mortgage interest rates are at record lows, home prices have firmed and there is good selection of property in most areas, so buyers with good jobs and favorable credit ratings find themselves in a fortunate position.”

Back in 2007, when the market had already started to turn, NAR was encouraging homeownership since mortgage rates were still "at record lows, thus making it a great time to buy." I guess any trade association is going to tout the virtues of their product." Being the publisher of the NAR report, can best be described by our friend, Mr. Naylor, "My job requires a certain... moral flexibility."

Thank you for buying a product who's value will fall 5-15% and be stuck there for the next 10-15 years.