Friday, January 09, 2009
The Fuel to Drive Prices Lower
In spite of the short sighted Citi deal to allow bankrupcy court cram downs, thousands of homes will foreclosed in the next few years, courtsey of foolish buyers desperate to follow a 1950s dogma that dictates living as high as possible. See the link to the right for the Shallowest Generation. As you can see, there will be plenty of kindling for the bonfire of home prices. You can thank the Bill Clinton and his expansion of the Community Reinviestment Act. You can thank Barack Obama for participating in litagation against lenders who didn't lend "enough" under the CRA, for our current mess. And to a lessor extent, you can thank the Republicans for deregulating the banking industry through the 80s and 90s, although they did try to get the genie back in the bottle after they realized it had escaped with the help of the CRA expansion.