House Prices Rising? 
Wednesday, August 15, 2012 at 5:00AM
[Positive Dennis] in Economics

The following Wall Street Journal video implies that since Warren Buffet, billionaire investor, is buying housing products, you should too. Maybe. But what the video does not mention is that Buffet owns insurance companies. Insurance companies must invest in order to get an acceptable rate of return. That is how they make their money. Housing may be the cleanest dirty shirt right now. 

Note that the video does not mention what I think is the key issue for housing, interest rates. Interest rates are being kept artificially low to prop up the economy. What is going to happen when they rise? Oops. 

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