I think housing, while not ideal, is a free enough market for people to have made an informed decision had they wanted to. The mass frenzy akin to the tulip craze in Holland back in the day was the real culprit. Rational people were irrational and turned their backs on time honored methods used to value houses.

People like myself looked at median income vs. house prices as early as 2003 and decided it was overpriced… as such, the wife & I didn’t buy. That’s all the info rational people needed to make an informed decision and it was available, people just chose not to use it and bought the hype.

While I have no love for the Realtors, brokers & banks, I think regular people shoulder half the blame.

As for a free market, wouldn’t the ensuing crash of the housing market imply that it is in fact free enough to take care of itself in the end? Once people realized the fairytale was ending, they started looking at the data available and getting the hell out! Sounds like a market to me.

- Dan

http://www.associatedcontent.com/article/2394906/lenders_are_being_paid_by_us_goverment.html?cat=3

http://www.associatedcontent.com/article/2381656/why_obamas_home_affordability_program.html?cat=3

I need a vacation. In fact. I am going to take one. I didn’t throw my money away and live on payments, like some down and out buy here pay here swap your title for cash family hero.

I don’t blame the government. All they were doing was trying to help the banks sell loans after all. That’s their job. Now its up to them to turn this around and help sell more loans. I long to be a loan officer in the White House.

So blame the lending dimensions. Blame the risk that was setup. Blame the Mortgage people in the federal government. Of course no college boy got in trouble here. They are way to smart for that. College boys of course can figure out that you just may loose your job, thirty years on a mortgage is a long shot honey we just may make it. Give me a break. If your that stupid to take a long shot like that you deserve to live in a tent.

So here I sit. To smart to have taken the risk. While all the college boys. To many to number. Who thought they were so bright. Who just loved conservatism. Who sat around and bewailed all the government programs. Grovel at the feet of the newly appointed loan people in the White House. Not daring to invoke all the government waste. Realizing they had made a stupid move hanging with all their good so called conservative buddies who knew it all. Their love of their con friends reminds me of the Dylan lyrics. “Once upon a time you dressed so fine. You threw the bums a dime in your prime, didn’t you? “You used to laugh about everybody that was hangin’out. Now you don’t talk so loud. Now you don’t seem so proud. About having to scrounge your next meal.”

Your good friends. Stuck it to you good. As I sit here watching you get slowly washing down the drain. All the smart boys in their overpriced houses and cars. They used to sit and laugh as you ran like rats trying to pay it off. All the while thinking hey we are just like them. Get a job. Try not borrowing your way to happiness. Don’t live on payments. People that have you make payments on anything arent your friends. They are just screwing you. Try to remember that MR MBA.