[quote=CONCHO]…..Don’t forget the state governments. What would they do if property taxes suddenly plunged as house values reduced 50%? And don’t forget the banks. What would happen to them if they had to realize 50% losses on their mortgage portolios? The baby boomer homeowners are only a small (and not very influential) part of the pressure to keep home prices high…..[/quote]
Any very powerful and successful political movement (like the movement to keep home prices high) typically depends on two key factors, not just one:
1. A core group of people who have a lot at stake, and a lot of money. They drive the lobbying of the pols.
2. A wide group of voters committed to the cause. Even a stinky rich lobbyist isn’t going to be able to pull off a massive and broad redirection of a dozen Congressional committees and dozens of federal agencies. You need a large group of voters (and journalists etc pandering to them).
