Going to keep it simple today. Yesterday I discussed housing prices and why they must revert to the mean before the housing market stabilizes. I also discussed my frustrations around our government's constant attempts to prevent this from happening.
Glenn Beck did an awesome piece around this last week, and I wanted to share it with you. Throughout time we have seen bubbles and busts in the housing market. The end result is always the same: Housing prices ALWAYS revert back to the mean.
It will be no different this time folks. Whats scary here is look how much further housing prices must drop before we get back to reality. Imagine what the ramifications of this will be in terms of unemployment and bank losses as we painfully move back to reality.
The bailouts will not stop this process from happening. All they will do is delay the inevitable and dig us deeper into debt. Anyone thinking we will see a recovery before housing gets back to historical pricing levels needs to get their head examined.
Glenn asks an awesome question around Obama's remarks: Does this sound reasonable to you?