The fundamental root of the housing bubble–the collusion of the Central State and banks to extend home ownership to millions of citizens who did not qualify for that burden– remains firmly in place.

There’s been a lot of housing market activity in both the public and private sector recently. Modifications to the HAMP and FHA programs to address loan modification failings and more negative equity Launch of the HAFA program to promote foreclosure alternatives including short sales and deeds-in-lieu of foreclosure Modifications to Bank of America’s National Home [...]

There’s been a lot of housing market activity in both the public and private sector recently. Modifications to the HAMP and FHA programs to address loan modification failings and more negative equity Launch of the HAFA program to promote foreclosure alternatives including short sales and deeds-in-lieu of foreclosure Modifications to Bank of America’s National Home [...]

Unfortunately I don’t expect dramatic results from any of these programs because of another core problem. Our financial institutions can’t afford to forgive all the debt necessary to eliminate negative equity and remain solvent, and neither can the FDIC or, with this ballooning deficit, the federal government itself.

The cry of “wave!” continues. You don’t have to wait long between news stories about shadow inventories and impending waves of foreclosures that are poised to devastate the housing market. In September, Bank of America predicted “a spike from now to the end of the year in foreclosures.” A spike that didn’t happen. Also in [...]