Wednesday, March 26, 2008

Paulson Says US Shouldn't Prop Up Housing Prices

Wow! Finally a statement from Paulson that I agree with! Thank god some politician finally said this. Listening to other politicians you would think this is the worse thing ever.

The government can not control the home prices in the longer term. And a lower price means more people can afford homes. With lower home prices people will be able to buy homes with overextending themselves as has been happenning over last few years. The prices will have to come down to where median income family can afford a house!

"A correction was inevitable and the sooner we work through it, with a minimum of disorder, the sooner we will see home values stabilize, more buyers return to the housing market, and housing will again contribute to economic growth," he said on prepared remarks for delivery to the U.S. Chamber of Commerce.

Still, he said that if homeowners who are "underwater" on their mortgages walk away from them, they are no more than speculators and don't deserve special help.

A simple 20% downpayment will make people think twice about walking away. The banks that lended Ninja loans deserve what they get if people are going to walk away.

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