But That Makes Way Too Much Sense

There is a simple solution to the housing crisis: lower prices.

Congress is currently discussing creative new ways to prop up this market. It should be plain as day at this juncture that the government cannot fix the housing market with their incessant fidgeting. The market needs to correct further before reaching a sustainable bottom. Lower prices will act as an automatic stabilizer by generating significant demand. At this point, more government intervention merely kicks the can down the road by pulling demand from the future. We can continue to deny the simple economics at work here, but at some point the market will prevail and prices will settle at a level that the market can absorb. In my opinion, the sooner this happens the sooner we can get on with the recovery process. Unfortunately, politicians have elections to win so they will continue to use their law degrees to attempt to change the laws of economics. It won’t work.

The debate over whether to prop up the housing market through banks or through keeping homeowners in their homes is ridiculous. Why do "homeowners" or "mortgage holders" get to carry any special privilege than other debtors? It makes zero sense. This romantic notion of the American dream and home ownership has been manipulated into a suckers game where greedy lenders, dishonest brokers, and foolish consumers collude to push up the prices on homes and leave normal people overpaying and then on the hook for bail outs. I just hope the market corrects in the next 5-7 years, right when I'm getting ready to buy.