ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

The disingenuous vs the despair- Housing market blues

Updated on September 11, 2010

Nothing like a secure foundation, is there?

Who's going to pay for the mess? You guessed it, the next generation of homebuyers

There are few policy choices more guaranteed to hit the nervous system of America than the concept of letting the housing market find a natural level. The idea is basically sound, but does Middle America’s battered financial psyche want to have to deal with another round of perceived symptoms of Armageddon? How is this idea to be sold and what resistance can it expect?

There are likely to be some instant negative responses, starting with the financial sector, which has been an unwilling participant in all economic management issues since the meltdown. There are always good disingenuous arguments against anything in this sector, and the most likely is that it will affect the bottom line of banks, which will be depicted as being left holding assets worth much less.

The disingenuous element here is that the market is already doing that. Buying expensive houses is hardly the market’s top priority at the moment. The free market has already made a decision not to throw any more money out the window. The lending market created this unsustainable wrecker’s yard for itself.

The credit market is another major likely source of disingenuous howls. This sector has somehow managed to outdo even Wall Street with its version of “The public is the problem”. This sector penalized people who bravely tried to continue to pay their housing loans after the meltdown. Deadbeat borrowers had no problems and vanished. The honest borrowers were forced out of their homes and left with crippled credit ratings. Those ratings are now major obstacles for people trying to borrow to buy houses.

Then there’s Wall Street, the lone epitome of selfless integrity and credibility. The stock market will inevitably react to a drop in housing loan values and any domino effects through the construction and materials industries. Wall Street’s ability to play politics is apparently based on the belief in its own sanctity and its contribution will be sermons on market asset values in terms of equity. Irony is usually lost on those responsible for ironic situations. 

The most easily predictable disingenuous response is political. The bipolar disorder previously known as American politics has attained a level of simple- mindedness previously unknown. Whatever is suggested will be wrong. Many long serving politicians on both sides have now been screaming at the top of their voices for nearly a decade that polarized politics paralyzes Washington. Another day, another irony.

The truly disingenuous element was built in to this market during the boom. The housing prices which created the mess were always delusive relative to real buying capacity. Even without a crash, those top dollar prices were always a risk. The market was always going to hit a wall somewhere.  The only real novelty in the housing bust was that the lenders brought along a way of crashing themselves as well, in the form of the overblown mortgage securities. Banks and other lenders created a Ponzi scheme based on a myth of ever-increasing house prices. The result was inevitable.

The housing market has already single-handedly decimated the real assets of Middle America, and there’s no working logic in helping it continue to do so by artificially trying to sustain prices. Nor should free marketers be in any hurry to support the industries which insanely milked the biggest, healthiest cash cow in American history to death. If anyone wants to see a good free market again anytime soon, start looking at realistic housing prices. America has been dealt out of its biggest capital sector, and it needs to get back in the game.


    0 of 8192 characters used
    Post Comment

    • Hello, hello, profile image

      Hello, hello, 

      8 years ago from London, UK

      A very true and down to earth hub. Thank you for a great read.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)