No Need for Obama's Housing Bailout?

Fears of massive defaults may be overstated.

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What this chart (via Jim Glassman at  JP Morgan Chase) says to me is that housing is now undervalued. And, as Glassman expains, "even if house prices continue to fall, don’t be so sure that defaults will worsen, because the weak hands—speculators—by now have been washed out. Folks who actually live in their houses and can make their payments don’t turn their keys back to lenders, just because prices are down.

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