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Building fears over housing

As so often is the case, good news about the economy is being reacted to by some economists and politicians who fear it will not last.

The housing market, one of the key factors in our economy, seems to be booming. Sales of existing homes were up 9.6 percent nationally during the past 12 months.

So what’s the problem? Some analysts say there is not enough housing stock to keep the boom going. Housing contractors may not view that as a problem.

Other skeptics worry that interest rates and housing prices may increase.

None of these concerns should be viewed as an excuse for government intervention. The last time that happened, it led to a “subprime mortgage” crisis – and a recession.

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