You could, frankly, go further. Many other forgotten people rented during the real estate bubble. They wisely shunned the hype and refused to take on too much debt to buy a home they couldn’t afford.
Where are they now?
If politicians jump on Gross’ proposal, these people would be forced to pay higher taxes in order to save other, less prudent people from the alleged indignity... of having to rent.
The quote says it all in a nutshell.
Overall, a very well reasoned and rational assessment of what should be done and of what to expect and why. Home prices in some areas went up so fast and so high, artificially, that a good bump down is warranted. This is a crisis, not a catastrophe. In my finantial ignorance, I expect to see the economy in a mild recession next year, before a healthy economy bounces back strongly. Who knows?
Nice balanced assessment without the extemism either way.
Great post. Thanks!
I wouldn’t be all that worried about a recession, unless the consumer gets really spooked, but that doesn’t seem to be happening. Just last week new home sales number came up as a big upside surprise - ie, there is still an underlying bid to the housing market. But it’s definitely a buyers market.