Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (30586)	4/8/2008 9:43:49 AM
From: Oblomov	Respond to of 78748

If there is a cascade, or a washout of people selling their houses, then that's great! Better a washout than a nation of zombie house occupiers who can only get on because of a dole queue mortgage. You are correct that there is a floor to house prices, which is when it is less costly (in terms of cash flow) to own than to rent. But this is where housing prices are going no matter what the government does. It can get there quickly, or slowly. But isn't the slow route is more likely to alter consumer psychology, and create a negative impression of real estate as an asset class? If there is a wave of foreclosures and liquidations, someone will benefit. Perhaps even a nice, frugal young couple who shunned buying a house until they could really afford it. I believe that laws and social norms should exist to reward such a couple, not people who failed to see more than one month into the future.