Lereah left the NAR in 2007 -- he says voluntarily -- after pumping sunshine into the housing market
"...we have established a bottom," Lereah said, despite all logic and data.
But borrowing a page from the Rod Blagojevich playbook -- or maybe it is the other way around -- Lereah told the WSJ in its January 12 article that he really didn't mean to sound so positive, that his bosses made him do it. According to the Journal, Lereah says that "because the NAR represented the interests of Realtors, he was pressured to say positive things about the association's data releases, but that he pushed back in some instances" and that "he sometimes asked the public-relations department to tone down the quotes about the housing data releases they had written for him." That sounds somewhat like Blago's line that he angered the state legislature because he tried to do good things for the people of Illinois. Lereah's old buddies at the NAR have denied the allegations, and according to the "impeached" economist, they are not returning his phone calls or inviting him to their parties.
I listened to Lereah on some business shows as the storm clouds were forming in 2006 and 2007,
We'd all be rich if we had shorted real estate every time Lereah said the end of the bottom was near.
Now the media are turning on him, with his cooperation (echoes of Blagojevich there too), reminding us that bloggers had dubbed him Liar-reah and Baghdad Dave for his spate of disinformation. Under the headline "The Bottom is Near," the Journal on January 11 printed excerpts from Lereah's comments of January 2006 through his "we have reached a bottom" comment exactly a year later. Lest we think the NAR has learned any lessons from the Lereah legacy, look only so far as the man who replaced him at the NAR. In Lawrence Yun's latest comments on the market, he says sales of homes might increase by more than 10% with a "proper real estate focused stimulus measure." Whatever that means.
Note: If you cannot access the Wall Street Journal articles referenced above, let me know and I will email them to you.
