Toldja So

One of these days I should do an “I told you so” post regarding the housing market.  I was one of the first people I know of to point out it was a bubble and destined to burst.  I can’t say not everyone believed me, but mostly people seemed to be skeptical and went right on encouraging us to buy a house at the height of the market, since there was nowhere for prices to go but up.  I wonder if anyone but me has ever pointed out the generational angles.

When I get a chance, I’ll go looking back for my posts on the topic.  That could be interesting.

Heck.  When it comes down to it, housing is the other item, on a list that includes health care and insurance costs and college costs, where the problems have been largely caused by the government people might now want to see intervene in hopes of “fixing” things.  The difference is that local government contributes to the overall problems.

1. I don’t know if the bubble burst so much as it deflated. I remember the last go-around in the early 90’s and that was definitely a bubble burst.

   Foreclosures are up, but ~70% of those are on sub-prime mortgages. Fortunately the banks have apparently learned their lessons from the 90’s and didn’t give out very many sub-prime home loans. But the mortgage companies are certainly circling the drain, with ever more of them either going bankrupt or writing more traditional mortgages.

   It will be interesting to see what happens to the housing market over the next two years now that “easy” credit has dried up and most lenders are now requiring 5-10% down payment and a reasonably good credit report.

   Posted by DCE  on  08/12  at  01:09 PM  from 
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