The NYT Gets It Seriously Wrong on Housing

The NYT's lead editorial told readers that:

"Congress and the White House have yet to figure out that the economy will not recover until housing recovers."

It's not clear what the paper means by this. The piece complains that, "sales of existing homes fell in July by 3.5 percent, while prices were down 4.4 percent in July from a year earlier."

If it means that prices must recover then it is looking in the wrong direction. House prices are still about 10 percent above their long-term trend l...