NY Times: Some Say Let The Housing Market Fall

As the economy again sputters and potential buyers flee — July housing sales sank 26 percent from July 2009 — there is a growing sense of exhaustion with government intervention.  Some economists and analysts are now urging a dose of shock therapy that would greatly shift the benefits to future homeowners: Let the housing market crash.

When prices are lower, these experts argue, buyers will pour in, creating the elusive stability the government has spent billions upon billions trying to achieve.

– “Housing Woes Bring A New Cry: Let The Market Fall”, David Streitfeld, The New York Times, September 6, A1