The house price bubble was used to allow people to do refis...to pay off their credit cards...
THIS ALLOWED FOR THE MIRACLE OF CONSUMPTION WITHOUT WAGES...!
During the house/creditcard bubble...Wall Street was moving American production off shore...
That was OK...because STAY AT HOME DAD WAS A DAYTRADER BACK IN 1999...
And if that didn't work out...there was always the home refi...to "catch up" on credit cards... And perhaps the wife was working at the school district and had health insurance for the family...
Most of that ended in 2008...or will end very soon as the stimulus dries up...and Republican austerity kicks in...
Most house sales are short sales to all cash buyers...ie investors... And likely they will lose too...
This house collapse has a long long way to go....younger buyers don't exist...they just don't have the jobs and wages to get into the house market even at these levels...
IT IS SPECULATION AND EASY MONEY ...FROM INVESTORS AND CASH BUYERS THAT IS SUPPORTING THE HOUSE MARKET TODAY...
NOT "NEW BUYERS"...
THEY ARE MOSTLY NONEXISTENT ...LIVING AT HOME WITH MOM...SLEEPING ON THE COUCH...WITH MASSIVE STUDENT LOADS TO WORRY ABOUT...
