Solution To Housing Bubble

<p>What do you think is a solution to the housing bubble? I need to write something on it.</p>

<p>Greenspan, suggested that the appropriate powers buy 2million homes and then bulldozed down.</p>

<p>May be give 2 million homes to the Chinese, Dubai, Malaysian soverein wealth funds. They bought the housing debt through US Treasuries, CDO, MBS, in the hedge funds and bankering companies.</p>

<p>I think the housing bubble has already solved itself. Maybe the question should be what the solution to the housing implosion should be? One answer would be to do nothing, let the market find the true price of housing over the next couple of years as foreclosures make their way through the system.</p>

<p>I think that foreclosures are taking way too long to work through the system. There are people out there who haven't made mortgage payments for YEARS! The lower prices of those houses keeps a lid on the whole market. Until we can clear the system of those foreclosures, we won't be able to move forward--it's like death by small cuts.</p>

<p>There isn't a solution to the housing bubble which is why things are taking so long.</p>

<p>Any action hurts a certain set of people or organizations by a certain amount and politicians have to respond to complaints by those people and organizations. So there are actions but there aren't solutions - at least to all of the parties concerned. That would make for a more nuanced paper than a relatively simple solution that doesn't consider the injured party.</p>

<p>The real solution is jobs and wage growth. But that is very, very hard to do - maybe impossible given global deflationary pressures on wages.</p>

<p>Perhaps the government could take a page from FDR's 1933 playbook and simply confiscate all houses at current market value ... then re-price the confiscated houses 60% higher!</p>