How to avoid the next housing bust

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  • Dr. Thom Long Beach, CA
    Aug. 10, 2014 6:49 p.m.

    It comes down to the federal government not guaranteeing home loans unless the borrower has a solid credit rating, can prove they can afford to maintain the load AND put 25% down on any home loan

  • Mountanman Hayden, ID
    Aug. 9, 2014 7:29 a.m.

    Keep the federal government out of the housing market, or suffer the consequences again like we did before!

  • Diligent Dave Logan, UT
    Aug. 9, 2014 6:53 a.m.

    Like I said, sub-replacement birthrates, due to the death, largely, of the traditional family, is killing us, economically, and otherwise.

    Even among LDS members, worldwide, fertility rates are at a sub-replacement rate! In 1982, the rounded number of births to members of the LDS Church, that is, who were named & blessed in church. less those who had been named & blessed, who turned age 9 but hadn't been baptized, were subtracted, was 124,000; and LDS Church membership that year first exceeded 5,000,000. Fast forward 31 years to 2013. LDS Church membership first goes over 15,000,000. And yet the number of children named & blessed was less than 115,500. To be sure, the formula and label for babies counted as members of the Church changed 6 years before. The LDS Church then quit subtracting children who had been named and blessed as infants who weren't baptized. Numbers increased around 30,000 from 2007 to 2008. Now the label is new children of record, instead of just children of record. For every 4 babies born per capita to LDS Church members in 1982, less than 1 was born in 2013! This means without converts, Church membership would be shrinking!

  • My2Cents Taylorsville, UT
    Aug. 9, 2014 4:27 a.m.

    The push is out there to force anyone that can be convinced to buy a home and using debt limit and credit card limits as base line income to bring the debt to income level below the new figures ration of 104% debt to income.

    That means this country's is so intrenched in debt and credit cards consumers are spending $12 a day more than they are making, $60 a week more debt than they earn. Means they would need a raise of $60 a week to break even with their debt and spending.

    Whats amazing is how can people who are spending 104% of their gross income qualify to buy a home? The economy is upside down in debt to income and city and governments think jobs are indicators of recovery. The only problem is that most workers have 3-4 jobs to have this upside down debt to income and 3 jobs per employed workers.

    And I haven't even touched on the school loan debts going into default at a higher rate. The economic bubble burst is a reality and no technology or voltaic energy cell made in China can fix it.

  • cjb Bountiful, UT
    Aug. 8, 2014 10:21 p.m.

    Government involvement in housing loans leads to people buying houses they can't afford.

    Likewise, it has screwed up college costs. Leading people to borrow, regardless of the cost of tuition, which has greatly increased the cost of tuition.

  • Diligent Dave Logan, UT
    Aug. 8, 2014 11:24 a.m.

    Well, making and enforcing strigent requirements on an individual basis sounds like conventional wisdom, which it is. Making sure borrowers can pay borrowed money back sounds logically right, right? Yes. But one huge problem.

    Who knows what tomorrow will bring for any of us? The Challenger space shuttle had multiple fallback systems, but it crashed anyway.

    The assumption being made is this. It was lending to borrowers who weren't the best prospects for paying back loans that caused the subprime crisis. So, we need to be more stringent in whom loans are made to, and be more vigilent in administering the loans.

    Problem? What if we re-enter an economy-wide recession, or even depression. What then for any and all individual borrowers? Even professionals, dentists, doctors, lawyers, etc., had income, and hence financial problems during the Great Depression.

    News out today estimates Germany is now edging into recession or depression with most of Europe already there. With Europe slipping, who is to say the U.S. won't have its economy go South again soon?

    The lack of marriages, and fmmily formation, including having above replacement birthrates has and is killing economies from Singapore to Salt Lake.