Jane

The Simplicity of Supportable Demand for Housing

Many good points in this article and I'm glad to see you name the builders and real estate industry as a major pusher of this bubble. But bailing out home buyers is really bailing out the industry. Directly or indirectly all bailout money is going into the pockets of the industry that caused the housing bubble and bust, and the economic mess we are in now. I'm against all forms of bailouts and tax incentives for home buying because they help keep prices artificially inflated and delay real recovery and a real economy based on sound principles instead of bubbles and govt blessings of these bubbles. It's disgusting that these industries that caused this are still getting their way in Washington DC through lobbying and campaign contributions. Many of these people committed mortgage fraud and should be going to jail, for example just one of many cases, Beazer Homes criminal mortgage fraud case settled with a promise to pay the govt money. I won't hold my breath waiting to see that promise fullfilled, and it creates little deterrence to others to do the same thing. We won't see real recovery with bailouts, we'll just see more of the same. But that is what these industry people want, isn't it?

Housing: Playing Games with Appraisals and Value

Thanks for mentioning the builder who's being sued for appraisal fraud. It's not just one builder doing it though. I would not pretend all builders got in on this but many did, including big so-called well trusted co's. I hope to see more investigations and if necessary lawsuits to put a stop to this. I don't think many realize, or admit, the role builders played in the housing bubble and bust, and that it was based on fraud or something darn close to it. To add insult to injury many builders are still advertising they do loans that are risky. And they are lobbying to bring back or create more toxic programs and/or get tax payers to foot the bill for the still overpriced houses. Regardless of what the builders say it costs to build, etc, the fact remains, much of housing is still not in line with incomes. With so many people losing their jobs, having to take pay cuts just to keep a job, etc, it's unrealistic and bordering on a fraud on the whole country, for this industry to keep pushing toxic loans, inflated appraisals, and more junk we tax payers have to pay for, so THEY can profit. It was a mistake to let so much of the economy rest on housing. If you're going to put all your eggs in one basket at least make sure the basket is not built of mud.

Personal Responsibility and the Housing Bubble

As for the title which includes the term Personal Responsibility, I'd like to see the housing and mortgage industries' leaders take personal responsibility. And, the govt officials who took their lobbying money and campaign contributions, too. The govt was warned years ago that mortgage fraud and lax lending would lead to a meltdown, and it did nothing.

As I said above, these industries sponsor networks and shows like HGTV's. They hammered the message into people's heads for years that they ought to own a home even if it mean using toxic financing. Of course they didn't call it toxic, they called it The American Dream of Home Ownership. The CEO's calling the shots at these companies were in some cases committing fraud, and they were certainly being unethical and destructive. Their pals in govt also knew. These people were in it for short term huge profits for themselves, it was never about homeowenrship. They of all people should've known it was wrong and dangerous. So let them take some personal responsibility, too, maybe by first being stopped from their incessant whine for a multi-billion dollar bailout for their industry. They should be investigated for fraud instead.

Those borrowers who lied or were complicit in fraud should also face charges. But many were not lying, they were duped, fooled, suckered...and in some cases outright defrauded by lenders forging documents.

Personal Responsibility and the Housing Bubble

Someone else in these many comments may have already noted it, but HGTV shows aren't there just because that network thought them up...they are there because the housing industry wanted them there. Look at the credits and sponsors of these shows. I see the National Association of Home Builders on some, for example. The mainstream media is controlled by corporate interests, and in some cases outright owned by corporate interests. These industries are pushing their agenda by way of "entertainment," and even "documentaries." It's nothing new.