John McCain understands the housing situation

Published on March 27, 2008 By Benmeister In US Domestic

I'm listening to John McCain speaking about the housing situation. The current "crisis" is due to housing speculator driving up the price of homes and creating a bubble. It is also due to irresponsible lending practices and people who got into homes they couldn't afford. All bubbles eventually burst as did the dot-com stock market bubble of the 90s and as the economy is currently experiencing in the housing market.

Home prices are falling because they're over-priced and this is merely a price correction and for the most part, the government shouldn't interfere.

Comments

Dr Guy

on Mar 28, 2008

Home prices are falling because they're over-priced and this is merely a price correction and for the most part, the government shouldn't interfere.

The situation is a bit more complicated than you make it out to be, but your summation is dead on. The government will not make it better, only worse. The market is correcting itself. If they do not let it do just that (and yes, people will be hurt in the process), they will just make the problem worse.

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