Your analysis was superb, except for that statement. There is no housing bubble; it's a sham ownership crisis.
These people still need housing. There will always be a housing shortage under the prevailing policies WRT immigration. We cannot ever catch up without a change in policy, and any change in policy has the potential to bring about an extreme disconnect between available jobs and existing skills in the labor force.
Regardless of what course is taken toward the resolution of these problems, we are going to be walking on eggs for a long time.
There is indeed a housing bubble, that has burst. New houses were being built in such a way as to exceed all reasonable market potential. Now there are over 5,000 brand new homes in Minnesota vacant because they can't be sold for what the banks are owed.
Please explain what *you* mean by the words, "sham ownership crisis"? Recall that a great deal of the inflation (say in Nevada and Phoenix) was due to people buying 2nd homes as investments Ü la Robert Kiyosaki ("Rich Dad, Poor Dad")
These people still need housing. There will always be a housing shortage under the prevailing policies WRT immigration. We cannot ever catch up without a change in policy, and any change in policy has the potential to bring about an extreme disconnect between available jobs and existing skills in the labor force.
Details please? In particular, I read in the Wall Street Journal or somesuch, within the last 48 hours, that some cities in the United States have a supply of houses (at current rate of sales) for 7 1/2 months...!
Sorry, I'm not trying to sound that disagreeable, I am genuinely curious.
Cheers!