Wednesday, September 21, 2011

Housing is The Problem

Housing is what initiated the financial meltdown of 2008 and the current economic mess the U.S. is in - and until housing is "fixed" there will be no "recovery".  There's lots of blame to go around for the subprime mortgage debacle (hapless buyers, politicians, mortgage originators, speculators, regulators, rating agencies, investment banks, etc. - I tend to blame the latter two in large part) but it really doesn't matter at this point.  (Financial regulations are being overhauled worldwide to prevent a similar meltdown in the future, and more and more crooked bailed out Wall Street hotshots are slowly being encircled.)  The problem is that unless something is done soon about the glut of housing on the market, the U.S. (and the rest of us) are looking at the next Great Depression.  The Economist described the issue this way: "No part of the financial crisis has received so much attention, with so little to show for it, as the tidal wave of home foreclosures sweeping over America. Government programmes have been ineffectual, and private efforts not much better."  Up to 9 million homes may enter foreclosure over the 2009–2011 period.

The Good News:  Tomorrow I'll give you the solution to the housing problem.