getlost

Greenspan: Still Almost Childlike in His Idealism

I have frequently read that many in government and on Wall Street were of the opionion that housing prices could only go up. The persons who say this are either liars or morons. Since they all are somewhat successful individuals, I can't believe that they are morons. So I must assume that they are all liars. But, why lie? Money, of course. Our system of government/business is almost completely devoid of ethics. I, for one, believe that there are many individuals who were involved in our current housing crisis who should go straight to jail. I am pretty sure that many of them are going straight to hell upon their earthly demise. They have inflicted a wound upon America the likes of which have never before been experienced. Is there any doubt to the harm done the American economy by the total lack of ethics during the housing crisis. It may be true that the housing crisis was caused by too many people buying homes that they could not afford, but had they not paid tens and hunfreds of thousands of dollars more for the house (thanks builders/NAR) than they were worth, many of these 'deadbeats' might still be able to afford the mortgage regardless of the monthly adjustments. It does not take a rocket scientist to figure out that when young couples are spending most of their paychecks for the mortgage, they won't be able to afford new cars. I am amazed that some government/business leaders (car manufacturers, perhaps?) did not sound the alarm early on in the housing crisis. Isn't there something wrong with government leaders who declare rising home prices a sign of prosperity (even as the price of a home soars past the level most young couples can afford) and declare falling home prices a catastrope. Well, falling home prices is a catatrophe to those young people who were scared into buying a home in 2005 by builders and realtors. Many of these people are so underwater in their mortgages that they may not see a profit for many many years. Most of them can't sell their homes without forking over a lot of money that they don't have. They have been doomed to live in their home perhaps forever. Their freedom to change change jobs or move to another area has been taken away. I am not one of these unlucky persons, but my son and his wife are. I hate to hear that it is the buyers' greed that caused this crisis. It was their naivite. As I said before - someone should go to jail. I don't expect business to be on my side all of the time, but I would expect government to be. That no longer is the case.