shodai

The Government's Subprime 'Bailout' Plan Will Kill the Housing Market

Good article. Two years ago, my family and I sold our house in CA because I saw this disaster way ahead of time. When I was selling everyone was bidding on a single house, jacking up prices to ridiculous levels. I even knew of college students able to buy homes with no credit history, or recent naturalized citizens bidding and buying these expensive homes. My experience with the Japanese real estate bubble taught me one thing, what goes up, does come down, the same as the stock market. Except this downturn is going to far different from the Japanese experience. Japanese save; Americans don't know the meaning of saving for a rainy day.
Most of these people who are expecting to be bailed out, should just dump their homes and get on with their lives. Home prices will fall big time in CA because they are so overpriced compared to wages. Job creation is declining in CA, wages are declining, while healthcare, energy, and food costs are rising astronomically. Keeping a home on a bail-out as home prices decline and wages decline, is committing suicide.