While I agree that a free market provides for when someone loses someone else gains, the current market is a government controlled market, not a free market. When the option of financing is essentially eliminated from a marketplace, cash is truly king and prices of the product will fall. Add that to a terrible economy and watch housing prices continue their plunge.
Who's truly benefiting is a great question. Sorry to say, what we're in the midst of is a transition from a nation of home ownership to a nation of renters.
WHO is benefiting??
It seems to me that this is similar to the government taking over the student loan business. They OWN that, 100%. Now, the most frequently mentioned number of 90% tells me that this IS the benefit. The GOVERNMENT will control who lives where. There will only be 10% of houses that WON’T be owned by the government. IF it even stays that way. Maybe it will only be 1%, and the rest of us will be at the unmerciful whims of bureaucrats in control of our lives.
That is what I wonder about, there MUST be an end game to this. AND not to our benefit, either.
AND just like the student loans will be passed onto their children, if they have any, I would bet that the housing loans will be a ball and chain around anybodies foot until every last cent by their great grandchildren is paid.
That is what I fear.
Ummm. It used to be you had to put 20 % down to buy a house, thats how it is in Canada pretty much. If you can pony up that much you can pretty much get a loan, period. ..
Sorry, but the Ponzi scheme days of house flipping are, rightly, over.