Home Prices Continue Crash
Here is the whole release.
Yet John McCain thinks we can/should put a "floor" under housing prices by buying up mortgages and forgiving some of the debt. Sheila "Che" Bair thinks something similar, and has been letting deadbeats off at IndyMac. I heard the story of one poor "unfortunate" this morning who admitted to being habitually behind on the mortgage since, oh, 1997. And these are the folks Bair is "saving" from recent, predatory lending problems?
Not only is this morally wrong, it's doomed to fail. Let the prices fall on their own. They're going to correct whether or not McCain and Bair like it, so the right people (those who won't pay their mortgages) ought to pay the price.
Obama's response is slightly (only) less idiotic. He wants to grant "homeowners" [because he can't call them what they are: homedebtors] yet another tax break, as if there aren't already way too many decision-skewing incentives already in place to help push people into irresponsible financial positions.
McCain... Well, no use talking to you or Sarah. You'll say whatever it takes to try and win a state or two now. B.O.? Forget the loopy tax incentives. Let housing correct itself without further dopey unintended consequences. Let the responsible savers out there come in and scoop up the homes when they're reasonably priced.