Tuesday, August 5, 2008

Case Closed, The Market Works

Were the housing bust started has now rebounded and we are all better off because of it, especially renters like me. http://www.usatoday.com/money/economy/housing/closetohome/2008-08-04-las-vegas_N.htm I only wish I lived in Las Vegas, but hope springs eternal. It appears that the speculators and unqualified to own homes have been removed from the market, housing prices are now affordable for the average person with a decent full time job with a responsible lifestyle. Banks are selling foreclosed homes at half price. The bubble burst and no one got hurt except the irresponsible.

A previous article in the USAToday also had a homeowner whining that a potential purchaser of his house was denied a loan for a $179,000.00 house because the potential buyer could not come up with a 30% deposit. (Sorry, could not find the link) Well, hurrah for that. The 5% down or 0% down was part of the problem. If you can't same 30%, then you are not solvent, don't have enough income potenial, and are not a dependable borrower over 30 years to qualify. That is how this problem got started when the Federal Reserve, unCivil Rights groups and the Federal Government all got together to force lenders to loan to minorities, illegal aliens and other rest of the oppressed who could not qualify for a loan because they had bad credit history, little income, and no ability to payback a loan.

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