I have to tell you I am sicked and tired of hearing about the housing crisis, the housing bubble, or how when housing rebounds so will the economy. Along with the above phrases go the causes, People never should have got the loans. The government forced banks to make loans. Etc etc. It is all BULL.
The problem in housing was, plain and simple the financial industry. It was the financial industry that got deregulated , had tons of money and needed a place to put it. They put it in housing. And when they could not stuff more in housing they created products ,which had nothing to do with buying a home and sold them too.
So you can say to me , "Well isn't that a housing crisis.?" No not really. It is like saying people got sick from eating meat tainted with Ecoli and calling it an Eating Crisis instead of what it is, a meat processing problem or crisis.
We have in effect shifted from the cause of the problem to blaming the folks victimized by the problem . Some how we are being told that even more deregulation , in spite of the fact that regulation worked from the Depression until 2000( the deregulation) is what is needed.
Now what we have is banks unloading properties at discount rates driving down the prices in communities so home owners cannot sell. Folks unable to get a loan when in 2000, pre "bubble" they would have qualified And Banks telling us how much we can get paid for processing the foreclosures.
Who gets bailed out? The very people who caused the problem. Do home owners under water get help? No. Do folks get modified? rarely. What we are doing is saying, " you meat guys who skipped safety steps and had tainted meat need to be bailed out for your losses and screw the folks who got sick."
So LET'S STOP calling it a housing crisis and call it what it is , A financial crisis that caused all kinds of problems including housing.
Lets go back to Glass Steagall which worked very well thank you very much and re regulate these guys. Financial institutions are in the business of making money and if you allow them to do so unregulated they will take bigger risks and we will be back to another crisis of some sort in the near future. With all do respect to my Tea party friends who say let them fail, that does not work either. Letting them fail means they go under and take my money with them. They make me an innocent victim again !!!
So don't think of a housing crisis, think of the cause and act accordingly with your voices to the folks that are supposed to work for us.
End of rant