Housing.com News, Analysis & Opinion: Mortgage & Loan: The Blog War Is On

To say that I disagree with his view is akin to saying that invading Iraq based on falsified and inaccurate reports of WMD's was maybe, kinda, sorta, possibly a bad idea--in other words, a vast understatement. I won't even bother quoting the entry itself, since it boils down to "these people cost me time and money, therefore they are evil."

This is what I'm saying: We can spend months or years assigning blame for the crumbling housing market, but that is pointless. EVERYONE is to blame. Uninformed homebuyers. Unscrupulous lenders. Alan Greenspan. Shifty homebuilders that employ illegal labor. Ben Bernanke's obssession with inflation. I could go on forever here.

We need to focus on solutions. The market will go through enormous short-term pain, but it will recover. You will always find a way to make more money. But people who lose these homes because they got screwed out of what they thought was a great deal--what happens to them? Foreclosure, wrecked credit reports, loss of personal savings, etc. This damages the economy AND weakens the fabric of our country on every level.

Education is key. Transparency is key. Oversight of the lending industry is key. Information sharing is key. Ironically, one of Bob's commenters gets it nearly exactly right:

In my opinion, 'new' technologies and theories often lead to very loose money and almost no accountability. Misguided funding and research, swindled investors, scams, bad policy, and little advancement. Certainly, research should be funded and promoted, but politicians/funding agencies seem to put all their eggs in one basket - risky future research - rather than implement upgrades along the way.

Not only is this sound advice for technology investment, but change a few words around and it's the smartest path for real estate investment as well. Research, study, analysis, and above all else, patience are essential to buying the best home for the best price.

But the lending industry preys on emotional impulse buys. Why do you think they so strongly oppose credit freezes?
They want you to decide instantly, right away, to have that car, to buy that gadget, etc.

This is why I can't excoriate and dismiss screwed homeowners. They made their choices, but their choices were constrained and tilted by a market and a system designed to play them for fools. They--we--deserve better.

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Robert Cote posted something on Exurban Nation that I can only assume is a response to my thoughts on helping people caught in bad mortgages. (Please correct me if I'm wrong, Robert.) To say that I disagree with his view is akin to saying that invading Iraq based on falsified and inaccurate reports of WMD's was maybe, kinda, sorta, possibly a bad idea--in other words, a vast understatement. I won't even bother quoting the entry itself, since it boils down to "these people cost me time and money, therefore they are evil." You're all heart there, Robert. This is what I'm saying: We can spend months or years assigning blame for the crumbling housing market, but that is pointless. EVERYONE is to blame. Uninformed homebuyers. Unscrupulous lenders. Alan Greenspan. Shifty homebuilders that employ illegal labor. Ben Bernanke's obssession with inflation. I could go on forever here. We need to focus on solutions. The market will go through enormous short-term pain, but it will recover. You will always find a way to make more money. But people who lose these homes because they got screwed out of what they thought was a great deal--what happens to them? Foreclosure, wrecked credit reports, loss of personal savings, etc. This damages the economy AND weakens the fabric of our country on every level. Education is key. Transparency is key. Oversight of the lending industry is key. Information sharing is key. Ironically, one of Bob's commenters gets it nearly exactly right: In my opinion, 'new' technologies and theories often lead to very loose money and almost no accountability. Misguided funding and research, swindled investors, scams, bad policy, and little advancement. Certainly, research should be funded and promoted, but politicians/funding agencies seem to put all their eggs in one basket - risky future research - rather than implement upgrades along the way. Not only is this sound advice for technology investment, but change a few words around and it's the smartest path for real estate investment as well. Research, study, analysis, and above all else, patience are essential to buying the best home for the best price. But the lending industry preys on emotional impulse buys. Why do you think they so strongly oppose credit freezes? They want you to decide instantly, right away, to have that car, to buy that gadget, etc. This is why I can't excoriate and dismiss screwed homeowners. They made their choices, but their choices were constrained and tilted by a market and a system designed to play them for fools. They--we--deserve better.