The information is all out there. Anybody with a 1/2 brain who is paying attention understands that house prices MUST fall and the massive debt swamping our economy MUST be destroyed and a certain measure of pain MUST result from this natural correction.
Good post. That graph showing current housing prices simply says it all. No doubt. House prices will come back to historic norms. There is no stopping that. Nothing. We can do this the easy way by letting banks fail, letting people lose their homes and letting the housing industry collapse. Or we can do this the hard-way by trying to fight this necessary destruction of debt.
We obviously are doing it the hard way, and that is just going to make the depression deeper, longer and more painful.
Such idiots.
Very good post. Clear as glass. Thank you.
“Anybody with a 1/2 brain who is paying attention understands that house prices MUST fall and the massive debt swamping our economy MUST be destroyed and a certain measure of pain MUST result from this natural correction.”
Yep. I work in the housing business, and I have been saying for about three years that there was a collapse coming. I knew that California, Florida, Las Vegas, etc., were absolutely overpriced, and that their collapses would badly damage the economy.
Here in central Texas, our market was never overvalued. I would watch sellers from CA, FL, and LV bring their money in here and buy ridiculous amounts of property with no real concept of value. Honestly, I am glad the bubble has burst. The situtation we had was unsustainable, and the longer it went on, the worse the problem was going to get. Unfortunately, Obama is going to make things much more painful than they should be.
Things have not been terrible in my business for several reasons...and I am thankful to God for each one! I do understand that a lot of people are hurting, and I hope this passes soon.