But it didn't need to happen, and it didn't need to now go below real value. That is happening because nothing is being done about the factors that built the bubble or the factors that are now deflating the bubble.
I do think it needed to happen because housing prices were going thru the roof (pun intended), pushing millions of Americans out of the housing market, and contributing to the disappearing middle class.
Actually, the shift in the taxes destroyed the middle class and helped cause the housing bubble. In order to maintain their standard of living, the middle class took 2nd mortgages and even "funnier money" paper on their houses. I have relatives who had no mortgage, retired, took those gimmicks that sent them a check every month. It was a part of the equity in their home, and now they have a home that is worth nothing to them. The "funny money" company doesn't even have as much equity to equal the amount they payed the owners.
Yes, there were several contributing factors. I have never been much for conscious, vast conspiracy, theories, but I do believe in conspiracies of interests. If you have several groups of people who have similar interests they will move toward the same goals without ever having to sit down together and hatch a plot. Still, viewing the Koch brothers, the Tea Party, Citizens United, supreme court justices attending planning meetings with the Koch brothers etc. I do actually see them sitting down together.
Guess I have to settle for an attitude of gratitude. I've got a roof over my head & I can afford my mortgage payment, even though my home is "Under Water", ie, my mortgage balance is higher than my home's appraised value. Now if I just don't get sick.....
And they say the economy is getting better but I'm not convinced. I bought my townhome in 1994 for $72K. At the peak in the market they were selling for $275K. Now they are short-selling for about $50K..... Almost everyone who bought at peak are now bankrupt!
I just got a post card in the mail the other day from a real estate agent, advertising a house on our street for sale. The house is very comparable to ours, and it is listed for $5000 less than what my husband purchased our house for 11 years ago....that was very sad to see.
Yes, Nichole, and when you multiply that by millions, some of it much, much worse, you can see how big the problem is. What is worse is that is only part of the whole problem. Many of those banks got bail-outs during the end of the Bush years, and now they are just sitting on that money, hauling in the houses, and in some cases destroying the houses and keeping the land.
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Comments: 23
Still, viewing the Koch brothers, the Tea Party, Citizens United, supreme court justices attending planning meetings with the Koch brothers etc. I do actually see them sitting down together.
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