You are right on – I plotted this chart about 6 years ago, and drew some extrapolation lines down. Back when everyone was jumping into the ponzi scheme, I asked: Why are mortgages so much more than rents – are you crasy?

Now it seems as an engineer that since 1996, we have outsourced more, graduated fewer scientists, and basically terminated the middle class. This is root cause of the real valuation that I feel must come. Obama cannot tax, stimulate, spend, outsource, expand the money supply, inflate our way to properity.

Rather the real-estate bubble initiated by B. Clinton using the CRA was a poor replacement at gaming the system. Instead to build the fundamentals we need to focus more on Science, Technology, Manufacturing, R&D, Energy……….

Without real middle class jobs, this may not end well………..

To use myself as an example (And to counter Thibs absurd argument in regards to young people being so ignorant), I make 100k per year, with roughly 2250$ a month in expenses. A “safe” price range for me would be between 90 – 100k. You can’t even find a decent home for 100k anymore. Salaries remain stagnant while all other prices across the board continue to rise, and home owners wishfully assume their home is this imaginary asset that continues to increase in value. I have to ask, why? Past precedence doesn’t necessarily dictate future truth.