3. Banks are making loans they never used to due to the packaging and selling of mortgages (including sub-prime) on the market due to Fanny Mae. This has to stop.
The MBS credit market which created the bubble is global.
2. Long term - The American population is still growing.
Only if you count immigration, much of it illegal.
Banks are making loans they never used to due to the packaging and selling of mortgages (including sub-prime) on the market due to Fanny Mae. This has to stop.
Fannie has been incapable of generating a credible financial statement for over 5 years. They have trillions in highly leveraged debt and derivatives which permeate every major money center bank, most small banks and money market funds. This problem is literally orders of magnitude larger than the S&L crisis.
"3. Banks are making loans they never used to due to the packaging and selling of mortgages (including sub-prime) on the market due to Fanny Mae. This has to stop."
This has been this way since the early 1980's.
Kind of a fundamantal piece of our financial system. And it's Fannie Mae...
I'm thinking of buying some cheap, foreign real estate, and having it shipped here in Chinese cargo containers.
True, many are still increasing - So far. I am waiting for next April to see just how bad this will get.
2. Long term - The American population is still growing. We will have another 100 million within 25 years. They will want housing
That was true in 1970 as well. It didn't keep prices from plummeting. People will always want tulip bulbs. It doesn't mean each one should cost as much as a small farm. Eventually people figure that out and down goes the price.
3. Banks are making loans they never used to due to the packaging and selling of mortgages (including sub-prime) on the market due to Fanny Mae. This has to stop.
It looks like it is going to stop, in a very painful way.