Bob Sherman

10 Reasons Why We Still Haven't Hit Bottom

We have only seen the tip of the iceberg. Americans are being crushed beneath their debt load. The Governments only answer is to free credit markets. They want to artificially prop up values by allowing the free credit that got us here in the first place to flow again. It isn't going to happen. Considering two-thirds of our economy is based on consumer spending and that spending is funded by an already unsustainable debt load, it is reasonable to foresee many more years of stagnent economic conditions.
The Madoff's of this country (and more are popping up daily) have ensured that billions of dollars once invested in the market will NEVER come back. The market may rally. The rally maybe sustained for some time. I doubt it but it is possible. The bigger picture is that America is broke. No matter what the government does the relief will be temporary. Just as water will find it's own level, housing prices and the market will eventually find true value and we aren't even close to that today!

Housing Solution: Crashing Home Prices or Cheaper Mortgages?

John,
Simply raising wages would cause significant inflation. Everything we consume would go through the roof. If companies believe people have extra income, they will get it from them.
Houses are over-valued. Americans are too deep in debt. Yet, the Governments answer is to get us deeper in debt. They can artificially prop up home prices but they are only delaying the inevitable. What goes up must come down and if Americans are smart they won't jump at home buying until values drop to where you can buy a home for 1.5-2 times your income.