Pop it now!
Moseying through the tinny yet strident “news” from the real estate markets that housing is on the rebound. To the real estate industry and their flacks in the press, we're meant to believe any increasing equity will redound to the benefit of homeowners. Not quite.
Remember where it all started: the unholy triangle between activist government (everybody gets a house with NO money down) crooked to lazy lenders, and banks who wanted a piece of the action (even though they had no clue what was in those pieces).
Even the chief economist of the National Realtors Association Lawrence Yun - the usually reliable cheerleader for rip roaring real estate markets, agrees that the future belongs to cash buyers, flippers,high-end purchasers, and people who live in areas enriched and subsidized by everybody else (Washington DC, the DC suburbs of Maryland and Northern Virginia).
Trying to gin up a new bubble is absolutely in error. What this country needs for a stable future is a market economy that invests in production and people, and gets a fair return on that investment. The only thing a new bubble will do is suck away capital (and by extension labor) at a time when we need real things, not dreams of McMansions sitting in former cornfields (the number of which appears to be a state secret, or at least the secret of the banks).
Between the idea And the reality, Between the motion And the act, Falls the Shadow (Inventory)
Bottom line: keep land and real estate prices down so the people can have decent housing and shelter. Keep land out of collateral for loans, and tax it to make the acquisition and sale quicker and cheaper. Let the investment go into the structure instead. Collecting economic rents from land will go a long way to permanently extinguish booms and busts.