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Just How Terrible Is Housing as an Asset Class? Roubini Weighs In

For an ordinary citizen in any country , marriage - have kids - a home -financially sound , are the the package that one trying to achieve at all times .

Home is the essential and a must to any family .

My " learned " author here suggested that the Administration ought to give up on helping the public to acquire a home because such attempts are proven bad investments .

Firstly , we are talking about people's homes and not investments .

Secondly , houses and land properties are the best investments in any sound economy .

The author pointed out that such is not true in USA .

I can see why by my experience in the stock market since August , 2007 .

Any middle class investing his / her hard earned savings into the supposedly " safe " bank stocks ended up losing all or became heavily in debts .

The once well to do family would not be able to pay their mortgage any more ; foreclosure is inevitable .

The subprime crisis became visible in August , 2007 .

The crisis as some article unfolded , might have been related to fraudulent matters - inflating appraisal on a house and then had some one with bad credit rating , mortgage the same house to a bank at a " price " well over and above the true market value .

I can see those financials relating to the subprimes would have a downward run in their stock value .

However , the short sellers by their concerted effort extended the downturns to regional banks which have nothing to do with the subprimes .

Many middle class who invested " safely " in the regional banks got hurt.

The vicious cycle naturally , spiralled into more and more home foreclosures .

The Administration saves the economy by shoring up Fannie / Freddie .

Those opposing to it apparently , work to a complete destruction of the economy of USA .