Weekend Funnies - 4 Sept 11

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Federal Government Housing Rental Program

A friend sent me a question via email today asking my opinion on a housing related question; thought I'd share:

Question:

"Randy, what happens when the majority of America walks away from their home knowing that it is toxic waste? How does America respond to that? It's going to happen and the Government knows it. Will they reset values? There is no end to this. Just talking. Wondered what your thoughts were."

My Response:

Agree the housing market is completely toast (bottom is still several years away), and this will lead to a tectonic/deep-rooted transformation to the American dream and desire of owning a home. Ultimately, it will take generations to forget the massive pain this ponzi schemed housing marked brought to millions of Americans... However, people will still need a place to live, and the banking system/US Gvt will be stuck with TENS of MILLIONS of foreclosed homes... With few qualified buyers however, the Gvt will have no option but to get into the "rental business" .... and during the course of the next decade, you will see millions of people who were previous "homeowners" transition to Gvt "renters"... Over time, it will become the "new norm" for America.

As a matter of fact, it's already starting: Obama Administration Aims to Flip Foreclosures to Rentals

Feel free to share your thoughts...