Bonds, herds and game theory

" Yes, existing home sales were up. But between the effect of last-ditch efforts (before it was extended) to get the $8000 tax credit, falling prices and most of all the ongoing subprime-condition FHA loans and the Fed's securities purchases, is the rise such a surprise? It may lift Wall Street for a bit, but, as Calculated Risk pointed out a few days ago, existing home sales are irrelevant for the economy. Inventory remains sky-high, and that's just the homes that actually counted."