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All those punctuation marks on the headline are a tribute to the inimitable writing style of James W. Paulsen, chief investment strategist at Wells Capital Management. Paulsen is optimistic that housing will not tank the economy. Here’s what he says in his September newsletter:
True, some buyers [who] bought at the top of the housing market are hurting. But for the vast majority of homeowners, perhaps the adage ‘house prices have fallen to levels most never thought they would get up to’ is most applicable!
No doubt this crisis is real and will have real fundamental consequences. However, much of the frenzy in recent weeks, initially legitimizing this event as a crisis, has either already been corrected or may prove much easier and quicker to correct than most currently think.
BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.