TheMajor

The Consequences of Another 10% Housing Price Decline

On Nov 26 07:05 PM vaughn wrote:

> Excessive debt must be driven into open and defaulted. Only when
> excessive debt is cleared via default, then the true price of assets
> can be sustained.
>
> All those bailouts by FEd via all kinds of funding facility can only
> delay the inevitable and is used to shift who shall eat defaults
> (such as from other agency debt buyers to federal reserve, etc.),
> the default will still happen for a very simple and basic reason:
> the home mortgage becomes unafforable for those who either shall
> not borrow in the first place or who lost jobs in this turmoil time.
>
>
> The only possilbe way to put a floor on the housing price is if huge
> demand can be created from thin hair: such as US passing a special
> immigration status allowing 5 million immigrants green card status
> simply for investing a sum of $500,000 into usa and use that fund
> to buy a house in the USA. This might temporarily create a demand
> and encourage tire kickers currently on the sideline to buy a house
> now instead of waiting for another decline of 10-15%.

THAT WOULD BE TREASON! NO MORE FOREIGNERS IN OUR COUNTRY - GOING DOWN WOULD BE BETTER THAN THAT.