Friday, March 26, 2010

We Could Have Easily Solved the Residential Real Estate Flop

There could have been a quick solution to the financial meltdown on Wall Street. It was suggested by some and by me, but 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 knocked them down. 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 all 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 imposing government meddling on America. At a cost that will entangle the economic and social lives of future generations of Americans.

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