Expat

How Will the Housing Crisis End?

Cool! You, my friend, are stinking genius. House prices will go up when people start paying more for houses. Say, that concept could revolutionize the Dismal Science. Could this be applied to other areas of the economy? Would the price of cars rise if people start paying more for cars? It's possible. We need to do some tests. How about the price of socks? Would it work for socks? If people pay more for socks, will the price of socks rise? Gosh, the possibilities are endless.

Now that pesky part about mortgages. You mean, if we let people buy homes they can't afford with loans that are sure to fail, more people will buy houses? Holy cow! You ARE really, truly a stinking genius.

And when people start buying houses (and, wait for it, paying more than the old prices, leading to, get this, higher prices...god, why didn't i think of this?), and when the stock of available homes reaches the equilibrium level of supply and demand, and then when we need more new homes to meet demand, why then (you are going to be astonished...I was) the homebuilders will start making money again. It's so simple. And their share prices will go up.

Dude, are you running for public office. Anything? Dog catcher? Clerk of the County Court? You have my vote. We need you. America needs your ideas.

I am awed. Truly awed by your level of outright stinking geniousity!!!!!!!!!!! (extra exclamation points to express my true awe)