po_folks

Bill Gross: If Housing Prices Decline Further, So Does the Economy

I do not understand how one "supports" home prices that are economically unsupportable. (Some local markets where housing price/income are way above trendline, I call unsupportable.)

Nor do I see any direct connection between diminished money market yields and bailout of the home loan industry. However, I do accept that in the end, in an interconnected economy, we all take a haircut (indirectly) when speculative bubbles pop. Which is why there needs to be re-regulation and sanctions for those who fueled it and profited.

Self interest is OK, incentives are OK, but blatant greed is antisocial and like insurance fraud, is not a "victimless crime".