CNBC's front page with a cute caption is the "housing crisis." Why is it a bad thing that houses cost less? Isn't that good news for everyone who doesn't yet own their own home? I thought it was home ownership, rather than real estate speculation, that was part of the American Dream. Wouldn't a crisis be what would happen if there was a sudden jump in the cost of a new home?
Unlike every other good, whether it is TVs, food, cars, or light bulbs, we've decided we want houses to be expensive, and that higher prices would be good for us. We're like oil producing nations hoping for a bump in the demand for gas. And yet, lower prices mean that in the future, if we buy a home, we can spend more on everything else in our lives and pay less for our mortgage. How can that be a bad thing? To me, that sounds like a boon for future generations.
Personally, though, I want my apartment to double in value, for me to sell it, then buy it back on the bottom of the market. A few times. Future generations be damned. And I want my internet stocks to go up to pre-bubble values, too.
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