[ninenot]

but you can also look at debt as an "investment"

Nope.

Debt taken for the purposes of investment is one thing.

Debt taken for the purposes of expenditures (large screen TV's, second homes, additional vehicles) ain't necessarily "investment."

Demand for housing is a factor of population, no more, no less (except at the very extreme margins--second homes.)

But the population must be able to PAY for the housing. Thus, income becomes important.

And as housing prices inflate, (while incomes do NOT inflate, after COL) demand will be reduced.

[Jaysun]

Debt taken for the purposes of expenditures (large screen TV's, second homes, additional vehicles) ain't necessarily "investment."

Most of our debt can be attributed to such expenditures and not housing?

[FITZ]

But the population must be able to PAY for the housing.

To free-traders that doesn't matter because the government can provide housing subsidies to those on welfare and who earn minimum wage -- and quite a bit more. With housing subsidies averaging $500 to $700 a month --- housing isn't a problem --- we can live easily with minimum wage paying jobs now --- the government takes care of everything you see.