Mar 29 2008
The Moral Implications of the “Housing Crisis”
Growing up, a home was not an investment tool to get rich. It was a place to live.
That all changed with the excesses of the 90’s and came to a screeching halt in the past year. Insane speculation has cause the housing market to spiral out of control. First to the upside and now to the downside.
In addition, builders concentrated on the high end of the market while ignoring the middle and lower end of the market. Bigger was better was the theme.
All of this cause people to go into markets where they were not financially able or prepared to be. They got in just on the speculation (and hype) of getting rich from the market appreciation.
This “housing crisis” is not a crash. It is a correction to get back to where the market should be, a home before an investment of gain. Hopefully the builders will also realize there is a market that has been too long ignored.
