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Are U.S. Home Prices Reasonable?

The author misses the root cause of the problem despite sharing with the reader the data which makes the problem clear. The problem is the extremely rapid increase in average SFR value from 1999 to 2007. According to the author's own figures average SFR value increased by over 200% in just 8 years. the author's own figures show that it took over 20 years for similar value growth from 1950 to 1972, and 1972 to 1999. Of course, new financial products made it easier to finance the debt portion of the rapidly inflated values but it was the buyers who accepted these new prices as "real" even though the average buyer did not experience a 200% growth in nominal income in 8 years. Clearly if price goes up by more than 200% in 8 years the standard 10 to 20% down payment of purchase price would also be over 200% more.The new debt products came into being because buyers did not have the standard 10 to 20% down payment of these inflated purchase prices yet the buyers demanded a means to purchase and an unregulated Wall Street was happy to supply the mechanism.

Roubini Now Says House Prices to Fall 30%

They will walk away because they can rent similar quality housing for much less than their mortgage + real estate taxes + home owner's insurance + repairs. They can save the difference, instead of continuing to make years of loan payments until the market goes up enough to give them positive equity.

Roubini Now Says House Prices to Fall 30%

A large number will walk away because the negative equity means they will have to continue to make years of payments as they wait for the home value to increase to just equal what they owe....and more time after that to build equity from amortization or future price increase. If they walk away they can rent a place to live much cheaper and save the difference.

Ethanol -- Tracking the Presidential Candidates: Hillary Clinton

What are McCain's, Hillary's, and Obama's position on 1) ending the appx. 51 cent per gallon subsidy on ethanol made from corn and 2) ending the appx 54 cent per gallon tax on ethanol imported from Brazil ?