On Sun, 24 Apr 2011 12:26:06 -0400, aemeijers wrote:

On 4/24/2011 10:36 AM, Han wrote:
wrote in news:de2db6ae-
:

As an example, in the recent housing bubble,
everyone got the idea that housing was a great investment, that
it could only go up. The government helped, by subsidizing real
estate with huge tax breaks, requiring lenders to make loans
in low income areas regardless of credit worthiness and keeping
interest rates very low.

In response to that, demand for housing increased, causing prices
to rise in response. Exactly how markets behave following the
most basic rules of economics.

Exactly, on the surface. Dig a little deeper and greed, stupidity and
abdication of responsibility played much bigger roles than "markets". But
I dont think we'll ever agree amongst all of us who bears the most
responsibility. Suffice it to say that the housing bubble wasn't uniform
over the US, and certainly not over all developed countries. Therefore,
either the markets were differentially manipulated, or some countries had
"better" regulation than others.


Don't forget the clueless or greedy individuals who signed up for loans
they knew damn well they could not afford. I blame them as much as I
blame the hucksters that invited them into the tent.

Many were worse; no-doc loans with nowhere near the real income needed to
support the payments.

I could have gotten paper for twice as much house as I bought, but saw
no point in it.

I put 50% down. I could *easily* have bought twice the house (and the one we
bought could be considered a McMansion - 2600ft^2). I never took a second on
a house, either. Other than an addition (garage) on our first house I never
pulled any money out of equity. That's just dumb.

And
even with the housing crash, I think I could still sell this place for
as much as I paid for it. No profit, especially once you subtract out
repairs, interest, taxes, etc, but I am far from upside down.

I'd lose some, but I've also paid more off than it's gone down. I'm nowhere
close to the water line.

'Blue collar' houses didn't crash near as bad as McMansions.

It's all about location. Most housing is now below the cost of replacement.
That can't last forever either.