I disagree somewhat. With the housing boom the way it is now there will be plenty of houses paid for in 10 -20 years. Unless, of course, the remortgage industry kicks in again.
I have been pondering this situation myself. I think it has to do more with arrogance. Bush, Clinton, McCain, the WSJ, and the myraid other open borders/free trade crowd simnply just can't envision the destruction of our culture and the erosion of our society. They believe the power and strength of the U.S. is immutable. It's just not possible for them to believe that their actions and decisions will be ever be detrimental to the U.S.
The republicans see themselves as both benevolent to immigrants and providing a source of labor for industry (such as it is these days). The left, of course, is only advocating illegal immigration to create a class of people who feel beholden to them so they can return to power.
In any case, neither side can look into the future far enough to imagine a U.S. that has been ruined. Both have evolved into political parties that believe that they are not bound by the history of human societal evolution: They each believe their way will be the first in the histoyr of man to triumph.
Our "leaders", both political and corporate, today are so insulated from the world of the common man that they think their insulation extends to the rest of us. They have enough wealth and power to protect themselves from any societal destruction that they simply cannot imagine it happening at any level of U.S. society.
There is historical precedent to show that when the top of society becomes to heavy it becomes unbalanced and is that much easier to topple. The U.S. is becoming more and more top heavy every year. Soon, external and internal forces will cause it to topple. Unless something is done to change the direction our "leaders" are taking us.
My compliments! You write a most insightful post, sir!
It's not that deep, really.
Nobody ever thought Greenspan would set prime near zero at any time.
That made loans come down to an all time low.
Retirees got nothing for their money in the bank, and all these loans were made with money from the old retired folks who were being screwed.
People with 5 year no interest loads 2-3 years from now will be forced to give their homes back to the banks.
As current interest rates go up (Now somewhere over 6.25% for a fixed 30 year mortgage), the amount of load people can afford will go down.
Somebody with a 1% loan has the same payment on a million dollar house that someone with a 6% loan has on 180K.
180K doesn't buy a lot. So I do think there will be some 1300% or more increases in foreclosures over the next two or more years.
Also, has anyone figured this gem out????
Government really makes out on these high priced homes, despite home owner's low loan rates. HOW YOU ASK?
PROPERTY TAX.....
1.25% of a 250K home is around 3k a year. Same home today goes for 700k and the government makes you pay 10k a year in property taxes a year before you pay off your loan.
Imagine that, maybe $800 a month for the cost of just your property tax a MONTH.
How will people be able to retire down the road with that over their heads?