There is little demand for the huge glut of houses available in the market.
The 'value' of these houses is inflated.
The reason so many bad mortgages were written is that these artificially-inflated house prices could not be covered by conventional mortgages. So, to continue propping-up the artificially-inflated market, the real estate brokers and the bankers colluded to pass bad paper to the consumers.
Now that we have exposed the underbelly of the crime that has been the United States housing market, it should continue to be left in the sunshine to fester and rot and find its rightful place in the economy.
No three-story wood-frame house wrapped in vinyl siding is worth three-quarters of a million dollars. Anywhere. Yet, that is the asking price for this low-end housing in Brooklyn, New York. Why? Because the market is artificially inflated.
Many people who purchased these houses at these prices are now in trouble with their exotic mortgages.
If these exotic mortgages had not been available, the houses would probably have sold for the three-hundred thousand dollars they are worth (on a good day).
Now that the market is collapsing, it is wrong - it is a huge mistake - for lawmakers in Washington, D.C. to bailout these home owners and keep the values artificially inflated.
Let the market correct.
Let the housing prices drop to where they belong.
Let Americans learn to live within their means.
Bailing-out Wall Street is criminal, and bailing-out Main Street is immoral.