By JLP | April 11, 2008
I’m getting tired of hearing about the housing mess. I’m especially getting tired of headlines like these:
Maybe these bills don’t help those who need the help the most because they are “unhelpable” (I’m pretty sure that’s not a word). For the record, I’m against even helping homebuilders. They were doing fine and dandy when things were going well. Now that things are heading south, they’re crying for help. I realize that these homebuilders employ people and that if they cease to exist, the jobs will go too. That’s how the free market works.
Housing, like everything else, is based on supply and demand. If prices fall far enough, there will be increased demand for housing and supply will tighten. If the housing supply gets tight enough, entrepreneurs will start become builders and start building again. Artificially propping them up with taxpayer dollars isn’t the answer.
I don’t see any easy way around this mess. I’m concerned that all these steps we are taking is only going to make things worse by giving people the idea that they can do whatever the heck they want and the government will come along and bail them out.
Oh, and before I finish this post, I want to point you to an interesting quote from the article:
The bill also offers $150 billion for pre-foreclosure counseling and stronger loan disclosure requirements.
WOW! ONE HUNDRED AND FIFTY BILLION DOLLARS for counseling and disclosure requirements? I would like to see the justification for that number.