Ron Paul had an interesting editorial today which makes sense and rings true:
“The combined policies of loose credit and government backing increased the demand for housing and drove prices sky high. When the housing market heated up to the breaking point everything came crashing down. Those suddenly facing foreclosure saw the reality of government compassion. Truly, when government offers you a gift, you should eye it with great suspicion.
My hope is that for the long term stability and health of the economy, the government will extricate itself from the market altogether and let it normalize. My fear is that in its usual misguided efforts at solving one crisis, it will create a thousand others.”
Not only does this make sense, it will eventually be the only thing that works. Unfortunately, as he suggests, a lot of damage will be done to our economy before we get there.
The full article –
http://www.safehaven.com/article/17931/let-the-housing-market-normalize
