Let's get a show of hands..... Who thought the home prices were out of control in the first place? Now that we have so much invested in these over priced homes, do we need to make sure the air doesn't leave the bubble?
What did "we" do to inflate the housing prices as high as they were? Is it truly every man's right to own a home? Economics is a roller coaster - if you liked the ride up you'll definitely scream on the way down. Supply and demand - I still remember my economics classes (I'm a visual person so I can still see the charts when I close my eyes). Someone in America manipulated the demand curve by lowering the standard of who can get a loan. Who has the ability to tell the banks to make risky loans to people who don't qualify. It's not the banks - bankers are calculating people who don't take chances (I've met too many "Banker" personalities, I know the type).
Most people who work in the housing market their whole lives know this was going to happen. they just thought it was going to happen 5+ years ago. The fact that it didn't is what is going to make this fall so much fun. IMHO the housing market is going to over correct. Unlike what it did in the 80's, it's going to go bellow the 100K mark. Wait an see and be ready when the time come to jump back on the ride we call capitalism.
