Asragov I respectfully disagree and believe you are missing the point. It is well understood that the bailouts will not stop the depreciation trend. However to simply handwave it away is not appropriate. It is one thing for people on the website to express bitterness for not being able to buy a home. To berate foolish buyers over the past many years for buying something they could not afford. Similarly I would guess the prevailing (and incorrect) belief by everyone who has been prudent was –
– It will not affect me because I have been prudent.
– I will not have to bailout these people.
Well what we are seeing is that these two assumptions have been dead wrong. You and I and everyone else from hardcore bears like JWM to others like Alex Angel and temecula guy and all the other players here will donate some of our tax money be it local, state, federal, whatever… in some way shape or form some of it will wind its way to the FHA or some other platform that in the long run will either bailout someone who f**d up or purchase a new jumbo loan on the secondary market or something like that.
To say, “oh don’t worry it will never stop the depreciation” is an improper response. Especially because there will be more programs like this. Our government is hell bent on continuing to promote spending and they will back that policy up come hell or high water. These programs will be rolled out at potentially federal, state and local levels. So I would kind of hold my breathe for awhile.