Someone who just doesn't get it.
Lockhart said that policymakers are eager to prevent a large drop in home values from their current, deflated levels.
"Just as we had a large overshooting to the upside. Is there any way to prevent going much further to the downside? That will cause tremendous harm to the U.S. economy, to the financial system and it's not necessary," he said.
Lockhart is either a buffoon or a liar if he contends that houses are at "deflated" levels now. Up 300% then down 30% does not = down. In far too many places, houses are still WAY too expensive by any historical norm, price to rent, price to income, pick your poison.
I suspect Mr. Lockhart is going to learn just how impotent he is. He can't set housing prices, no matter how much he chants "Yes, we can." With supply out of whack, more and more homedebtors defaulting on loans they never expected to have to services, and job losses, house prices will keep dropping.