I believe RE prices are close to zero in certain markets, ala, parts of Detroit. Need to bring back mark to market. The system needs to be flushed out. The government has prevented the full effects of the last 2 recessions to do what recessions are supposed to do...clear out the trash. Banks will fail, but they are ‘zombies’ now with the trillions of toxic debt. The longer we wait the worse it’s going to be. The longer we let this crap continue the closer we come to losing a way of life. We need to bring to justice ALL who allowed and/or took part in this housing/mortgage market fraud. No matter what we do now there will be nation-wide pain. It now depends on us and are so-called elected leaders on how long and how deep this pain will be.....I know, a somewhat simple answer to a complex issue, but the fraud has to stop to bring confidence back to the system as a first step. IMHO
Addendum: In general housing prices need to come down to a point where the average house price is around 2-3 times the average workers yearly salary.
Thanks for the answer.....I’ve been thinking of ways to deal with the problem without moral hazard , but without the cruelty to innocent people of what you propose.....
because I think the government caused the problem and NOT the private sector.....
I was thinking that you could let people collect Social Security now by raising their own retirement ages and using the upfront money as down payment to gain equity in or pay off their home....
Suppose husband and wife say “We’ll retire at age 70 for $100k cash now,,,,,,,”