Jason

You are entirely too kind.  But, thank you! 

Craig

Thanks, I appreciate your comment. 

Dave

Thanks for subscribing.  I'd be careful though, this blog thrives on controversy. 

Heather

I'll do my very best.  Thank you! 

Missy

Give me a little to time to get back to you.  My son is a virtual expert on facts about Greenspan and others.  I'll ask him when he wakes up : ) 

Gary - There's no doubt that the federal reserve acted recklessly and weakened the foundation of a system that worked fairly well.

Tom - Thanks!  Like Jason, you're way to generous.

Connor - Extermination might be the answer.  Where do we begin?

Doreen - I agree with you.  The feds are here to stay.  The nature of homeownership is destined to change before long.  It will no longer be the guaranteed path to financial security that it once was.  We're going to be regulated and papered to the point of insanity.

Frank - Thanks for subscribing.  Again, beware.  I'm not here for points or a following.  I just like to rattle the cage. 

Jeanean

I think we're in for a long ride and have no choice but to examine fiscal policy that failed while giving the appearance of success.   My sisters case deserves further attention as a prime example.  She was victimized by an unforgiving system with an insatiable appetite.  Her future is forever altered due to the decision to buy a particular home.  It's entirely plausible that the losses won't be recovered which would reduce her estate in time and the inheritance enjoyed by her children and grandchildren.  The consequences could affect the wealth of future generations.   Thanks for commenting.

Bryant  - Thank you very much!  I agree, there's been some great dialog around here this weekend.  It's been enjoyable and enlightening.  I'm curious to see what the near future holds for the industry.

Mike - Thanks!  I'll look for your post. 

Missy

It appears that Greenspan obtained his Ph.D. later in life from NYU and was spared the formality of completing a dissertation.  While younger, he abruptly ended his academic career to pursue, in a practical sense, his interest in economics.  While still in school, he had worked on a thesis that eluded completion.  It dealt with the savings and spending patterns of U.S. households. 

Kaye

We stand at the brink of a storm that will brew and rage for the better part of a decade.  I agree with your analysis of Greenspan and his monetary policy.  Dare I say it, but his plan to strong arm the economy to prosperity resembled a socialistic manifesto more than it did a a capitalistic philosophy.  Every college freshman knows that you can't initiate free trade by restraining market forces.

I look forward to your post about the marketplace in the great state of California. 

Fran

I like the analogy about the fox in the hen house.  Like you, I hope that a tenable solution presents itself. 

Hi Lizette

I think that dreaming is a good thing.  I have a lot more to say about Greenspan's policies that exceed the scope of a single post.  Like you, I hope that things get better soon. 

Leslie

Rene

There's no question that vanity plays into the equation along with a big promotion and a lot more money.  But, that still doesn't solve the problem of rapidly devaluing properties.  People who trusted the system had every reason to.  This saga is going to impact the distribution of wealth in this country for generations to come. 

Debbie

There's no question that my sister will fare just fine in the long run.  I like your suggestion that lost ground could be made up on another purchase.  Still, people are contending with issues that simply need not exist.   

Michael - I agree, but feel compelled to add that the feds will have no choice but to help the little guy at the expense of big business.

Rene - I'm glad to hear that positive adjustments have occurred in your market.  I've heard that resort areas are doing well overall. 

Bob - Thanks for the commentary.  The collective sins of our industry's past are now being revealed.  I agree, no one was complaining when quick and easy money was readily available. 

Ann - Thanks for the compliment.  A sane perspective and a moment of pause seems to bring most matters into focus.  Some pundits are suggesting that a national bubble is a fallacy and that regional imbalances are most likely.  I've hated the word bubble since the first time I heard it used to describe a real estate crises. 

Teri - Some would argue that the chairman of the federal reserve is the most powerful person on earth.  He alone determines monetary policy.  I'm hoping your  assessment is correct about 2008 being the turn around year.

Sharon - Thank you!  We need to recognize that real estate markets connect organically to security and bond markets.  The loss of equity in a home could have financial consequences within a family for generations to come.

Terri - I agree about gambling.  In fact, I don't gamble at all.   In this post, I'm trying to emphasize the plight of innocent homeowners who are suffering losses through no fault of their own. 

Christina - This concept of tolerance for foreclosed properties is interesting to explore.  In the past, boarded up properties existed mostly in neighbors that we didn't see or experience very often.  Now, we face the real possibility of the house next door being boarded up.  It's a sad reality for middle class America that touches us all. 

Lola

Your very welcome.  I suspect that we'll see federal intervention before long.  The proposed changes to the bankruptcy code (H.R. 3609) could be properly construed as intrusion by lenders. 

It's going to get interesting.

Terri - Thanks, I appreciate your insight.

Randy - I'm concerned that a relatively minor attempt at regulation by the feds will morph into something very restrictive.  It's almost obscene to think that a bankruptcy court could have the authority to alter mortgages to make them affordable to borrowers.  Lenders must be concerned about instability in the future.  I'd like to believe that a normal correction could correct the problem, but fear that it's too widespread.

Vivian - Greenspan was appointed by Reagan and served until two years ago.  You're right, the middle class will ultimately foot the bill for the current crises.

Annon

It just so happens that I live in a 900 sq ft condo.  I applaud your commitment to your mother.  Like you, I sold a house in November of 2000 because of a sense that something was very wrong.   I had a concern that housing values were escalating faster than incomes and a market collapse was inevitable.  It's surprising to me that the crash didn't happen much earlier.  Interestingly, the couple that bought my house sold it a year later for $100,000 more than they paid for it.  I would have done well to hold until 2005.  But, who knew!

I believe that our economy and our social values are highly dependent on stability in real estate markets.  For one thing housing is concerned.  One might argue that the stock market is analogous.  The vast difference is the ease with which one can trade stocks compared to the difficulties of  selling a home.   Although, I have to admit that I don't disagree with you entirely.  Prudent adults should have enough sense to recognize patently disastrous situations.  The scenario is equivalent to the S&L crises of the 1980's.  S&L's were offering substantially higher returns on investment vehicles than other institutions. The writing was on the wall for anyone who cared to pay attention.

While I agree that society, in general, is spoiled and that a dose of poverty is probably a good thing, I do believe that accrued wealth should stay in families. 

I've read your comments on other blogs and appreciate your sarcastic wit and honesty.  You're welcome here. 

Hi Kris

Thanks for your kind comments.  It's strange, but the devaluation in housing markets has effectively penalized many households for attempting to move up and realize the dream.

I'm not at all convinced that we're contending with a normal cyclical correction.  For one thing, some aspects of the problem were created by the feds holding rates artificially low for an inordinate length of time.  Also, the industry itself appears dysfunctional in many respects.  Mortgage fraud is a part of the problem as is predatory lending, but licensing and continuing education requirements are at fault at well. 

Even if a miraculous self-correction were to occur, what has changed to keep the crises from heating up again quickly?  We can't cling to a business model that's miserably failed the citizens of this country in the recent past. 

I'm possibly the greatest proponent of capitalism and free market enterprise, but intervention appears to make the most sense in this case.   It's reassuring, at some level, to think that the pending foreclosures would somehow purge and purify the system.  But, the head count would be staggering and the scars permanent.  Shouldn't the industry pay a price if consumers are expected to? 

I think a wait and see attitude is fatalistic since we're dealing with something in desperate need of emergency care.  I say "stop the bleeding," then diagnose the symptoms and make recommendation.  Thanks again.

Carole - I'm really at a loss for words except to say "Thank You!"

Fran - People need to understand that home equity isn't something to tinker with on a daily basis.  I appreciate the broad view of the crises espoused in your comments. 

Chris - Without a doubt, 911 plays into the equation.  It's so difficult to sort through all the variables. 

Tim

Isn't it great to see so much interest in such a complicated topic.  I wish I had thought to direct Title-opoly readers here sooner.  A provocative comment - by the way. 

Tim

Thank You!