Open Question: Whether the real estate market is good or bad....is the media to blame

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Do you think the media should be the driving force of whether real estate goes up or down? isthe media a good economic predictor? In 2004, the media dangerously touted how “red hot”the real estate market was and that everyone should jump on the bandwagon before its too late.“Buy! buy! buy! The American Dream of home ownership is within reach!” I couldn’t believethe frenzy created by the media as if they were out-of-control monkeys in a zoo who justescaped from their cage. I was in shock reading the news resports and the news on televisionabout how the media was alone----fueling this upward real estate trend so recklessly when theydont even know real estate! They are only journalists! Then mortgage brokers and banksfoolishly starting throwing subprime loans at minimum wage earners who worked atMcDonalds. Banks were qualifying these minimum wage earners for $250,000 home-doc andpiggy back loans. They told them not to worry because they could refinance next year when thereal estate market keeps going up(even though your hourly won’t) Your low 1% interest ratewont adjust until next year! Dont worry----because thats what the media and economic dataindicates. The market will keep going up...up...up!Then, in 2006 the real estate market collapses and three-quarters of country goes intoforeclosure. So much for the economic data and the media. I blame the media for this fraud.The economists are just as bad. Look at this negative nonsense posted in Jan. of 2008....."We are closing the book on the worst year for housing possibly since the Depression," saidJoel Naroff, chief economist at Naroff Economic Advisors. "I keep thinking a bottom is near,but we haven't gotten there yet." We havent gotten there yet?Well, according to the positive news posted in Jan of 2008 on Bankrate.com it states that....“new home sales are actually up from last month, albeit slightly, even though median pricesdeclined. The gist of the post was that demand will likely ramp up sales and assist the reboundand likely the "doom and gloom" will likely be over late in 2008. Still more mortgage resetscoming in the next few months and it will likely take 2-3 mos. for the inventory to be normalizedafter the foreclosures.” Now the question is....Who is lying and who is telling the truth? Should real etstate be swayedby the media’s opinions? They are just journalists who promote or destroy with no realknowledge of market conditions---other than the crap thats fed to them by other journalists andeconomists. What is your opinion?


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