Treasury Considers reducing mortgage rates to 4.5%

"until housing prices outstripped the benefit of the low prices" = "until housing prices outstripped the benefit of the low interest rates"

As a country we just need to take our lumps like men (or women) and take the downswing as it is. Nothing lasts forever, especially good economic times.

We probably got into this mess by everyone so worried about a recession after 9/11. Thats where I recall when all this cheap credit became available.

BigApple: "And I'm always envisioning a landlord laughing every month upon receiving a rent check...thinking what an idiot this renter is for paying his/her mortgage for them."

you think that the landlord gets a better laugh that the guy that receives more than a hundred times that amount from you for a falling knife?

anyway, i totally understand the stigma of renting 1st hand, so i get it. i'm just pointing out that "throwing money away renting" is not a happy/smart phrase.

about that economic recovery that many expect, i'll hold my breath.

http://economix.blogs.nytimes.com/2008/12/05/workers-give-up/?hp
http://www.theatlantic.com/doc/200801/aging-boomers

growth(econ) = growth(labor force)*growth(productivity). 1st is going down already and will keep on doing so, the second could start to go down also (2nd article explains why). as the second article points out, doesn't mean life will be tough, but it does have negative consequences for real asset prices.

the 2nd article has a very good point that's new to me:
"But these services require a lot of labor. According to an analysis by McKinsey Global Institute, the number of hours required to produce an automobile in North America fell by 1.7 percent annually from 1987 to 2002, to an average of about 100 hours. Meanwhile, it still takes about the same amount of time as it always did to drive a senior to a doctor’s appointment, or to help an older patient bathe and dress. Productivity growth is faster in the things that kids consume than in the things that the elderly need.

As the Boomers age, they will consume fewer of the things that we produce efficiently, and more of the things that we provide relatively inefficiently. Productivity is notoriously difficult to pro­ject, but many forces will be pushing it downward as the Baby Boomers age. "

It is a good thing so long as it is focused on qualified borrowers.