Affordable Homes?
Government has advertised it's efforts to make homes affordable for all Americans and in a few years home prices have almost doubled. What they really did make affordable was home mortgages. Mortgage was available at cheap rates to any breathing soul. Sub-prime was allowed. No 20% down. Liar loans. Then they paid 8K home buyer credit.
Does all of this really help the home buyer? NO. Would it be a better world if mortgage was not available? YES.
Housing market is at bubble prices. These prices are based on inflated credit. Lack of mortgage along will deflation WILL make houses more affordable. Yes wages will go down, but home buyers will NOT have to sustain the lifestyle of usurers for 30 years by paying mortgage interest. People who are working in mortgage industry will be doing more productive things, such as building homes, enhancing quality of life for all of us.
Currently total price of a home includes the mortgage interest which is income for mortgage industry. Without it, total cost of home ownership will go down! Availability of mortgage, especially when the money is created out of thin air by the banks, actually makes homes LESS affordable!