I basically agree with contraman’s conclusions. Here are my reasons:
1. There are far more voters who own homes and want house prices to go up than there are voters who want prices to go down
2. There are more voters who want to buy a home but have too little savings and/or income than there are voters who don’t own a home but have the wherewithal to buy.
3. Most of the pain inflicted by losses on bad mortgages is filtered through intermediaries and loses its clear bite before it hits the ultimate investor. My 410k fixed account may return less in the 5 years because of mortgage losses incurred by whichever investment company provided the fixed account, but I won’t even see the cause.
