Real Experts Could Have Solved the Residential Real Estate Debacle

I repeat now what I said a couple of years ago. It’s worth retelling.

There could have been a quick solution to the financial meltdown on Wall Street. It was overlooked by “experts” and the Federal Reserve.

The government could have bought up all the excess empty tract developments in California, Nevada, Arizona and Florida, and razed them. They would be off the market. No surplus real estate to undermine other property values.

There would have been a stop to the psychological real estate contagion that spread to the other states. The law of supply/demand would have applied. Much smaller bank assistance would then be needed to clean up the banking books.

We would have had a normal recession, not what has become an excuse for government-meddling. At a cost of multi-trillions that will entangle the economic and social lives of future generations of Americans.