On one hand I’m pissed at the economic retards who thought “housing only goes up” and caused housing to become ridiculously unaffordable PLUS they were almost single handedly responsible for bringing down the financial system (when they stopped paying).
But we can’t help that now. So I try and see if anything good can come out of this. One only has to look at our Gov. and Goldman Sachs etc., today to see that it is us versus them. If they make a losing play they will simply confiscate tax dollars to make up for it and keep the multi-million dollar bonus train chugging. Yes, our tax dollars will pay for the walk-away’s ignorance of basic economics, but that’s a lesser of two evils compared with seeing my tax dollars line banker’s pockets. I am less fond of money changers than bubble-nuts.
What good can come out of this? A total reset of the debt servitude condition the bankers feed off of. Under water home owners can simply walk away, but the banks will have to come back for more money and after this next round of grossly inappropriate bonuses, their next visit to the tax payer trough won’t be so easy.
Hey, instead of paying a 30 year $3000 per month mortgage to bankers, wouldn’t it be nice to have a $1000 10 year note and have extra money to help family and friends, maybe support and few charities and consume, so our economic engine can rev-up again? There’s your recovery. Consumer spending needs to be around 70%, without bubbles the only way to achieve that is through disposable income, on real income.
The people have some power here. You people thinking now is a good time to buy are ruining it 🙂
I’ve always said that the best way to live within one’s means is to keep fixed costs as low as possible. Housing is the #1 fixed cost for most households, yet so many people fail to understand why LOW housing prices are a good thing! It’s because we are fixated on housing as an investment instead of shelter. We need to change that mindset.
Hopefully, if housing continues to decline over many, many years, people will finally stop throwing all their resources at housing, and we can grow our economy in a healthy and sustainable way.
