Thursday, February 26, 2009

Some Sensible Thoughts on the Housing Crisis

Ann Althouse pointed to this article "I Bought an Expensive House. My Bad, Not Yours" by Joel Stein in Time Magazine. I think it makes a lot of sense.
"The only people affected by plummeting real estate prices are the ones who bought a house that cost more than they could afford, hoping for a spike in value so they could sell at a profit or take out a new loan based on an increased value. Their home wasn't just a place to live; it was an investment they thought they could liquefy at will. If we're saving these poor souls from the 26.7% drop in their investment, we should give twice as much aid to everyone who has lost approximately 50% in the stock market since its peak."

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