I gotta laugh because a host of economists now are quite upset that the never ending attempts to re-inflate housing bubbles just isn't going to happen. How long can one's denial last?

Pending Home Sales dropped 16% from last month. It's amusing how Realtor.com tries to paint the news a little better:

The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in November, fell 16.0 percent to 96.0 from an upwardly revised 114.3 in October, but is 15.5 percent higher than November 2008 when it was 83.1.

There is a video interview on Realtor.com discussing projections and once again, surprise, surprise, the reality that people need good stable jobs to buy homes pops up.

The PHSI in the Northeast dropped 25.7 percent to 74.4 in November but is 14.7 percent above a year ago. In the Midwest the index fell 25.7 percent to 82.0 but is 9.2 percent higher than November 2008. Pending home sales in the South fell 15.0 percent to an index of 97.8, but are 14.7 percent higher than a year ago. In the West the index declined 2.7 percent to 124.6 but is 21.4 percent above November 2008.

Yun projects an additional 900,000 first-time buyers will qualify for the extended tax credit in addition to about 2 million who have already purchased; 1.5 million repeat buyers also are expected to benefit from the credit.

But the home buyer's tax credit expires this spring. Maybe that's why the Federal Reserve is talking about resuming ABS purchases.

Most amusing are some of these quotes:

I can't see how our prices could get any cheaper.

You can't? When wages are repressed and there is zero net job growth for a decade?

We're just going to languish at the bottom.

That's right, housing prices are still no where near affordable in many states, particularly the Bay Area, California.

Meanwhile the first time home buyer's tax credit is projected to cost $17 billion.

Humpty dumpty sat on a wall....