The problem is that our federal government, in trying to ‘save’, the housing industry, has actually perpetuated its decline: the new stimulus package is offering an $8,000 tax credit for home purchases this year; the Federal Reserve is artificially keeping interest rates low; Obama’s housing plan wants to help homeowners drowning in bad mortgages.  You get the point.

The problem is that for someone relatively young without any real ‘roots’ purchasing a home right now is incredibly risky.  I may decide to get up and move in the next three to five years.  So each of these so called government ‘saving graces’ is injecting a big dose of the unknown into my plans.  Let’s say government sells me on buying a new home.  Then, a year after I purchase, the government removes the floor and my property value instantly drops to the corrective market price.  All the government has done is punish me, the good American, who is doing his best to save the economy.

Get out there and spend, right?

Better idea: Government, give us a chance to buy, let the market correct, flush out the misallocated resources, and move on.