28th
The housing bubble was an entirely preventable disaster. If the economists and other policy professionals who design economic and housing policy had not been asleep for the last decade, it could have been prevented.
Their incompetence will have serious impact on the living standards of a generation.
It would be the height of foolishness to create a house price support program to try to sustain the bubble.
The basic issue is that there is a huge excess supply at current prices. Unless we impose laws restricting construction to constrain supply, prices will continue to drop. At best, we may delay the decline and allow some current homeowners to sell at partially inflated prices so that the new buyers can enjoy the rest of the crash. That is not good policy.
