SCOTTKELLER.org

“The housing market has merely been a charade for the public while banks setup protective barriers and funnel taxpayer money into their balance sheet to fix the gaping financial holes that they created.” -Dr. Housing Bubble

The good Doctor always finds a way to put the feelings of millions of American taxpayers into brilliant analytical nuggets like this.

The FHA program has helped the banks artificially hold up prices, and enticed buyers to dive into home ownership when they weren’t ready. Even worse, many of these buyers are on their way to being underwater as California unemployment continues to ramp up, all while the state government is going bankrupt. This is a recipe for stagnant or falling home prices.

But the mantra of today’s market is that home ownership is the road to wealth, and always a good investment. Sure. Right. Tell that to thousands of home owners that are $200,000 underwater because they bought $565,000 3/2’s on postage stamp lots in 2006. Let’s see what they say about that “sure thing”.