Real Real Estate

When I was growing up nobody thought of buying a home as a great financial investment. It was something you needed -- like clothing or food. Then the economic Wizards of Washington (who responded with Pavlovian predictability to the lobbying of the real estate, construction, and banking industries) decided to more heavily subsidize mortgage debt. Everyone must own a home. everyone will benefit from owning a home (see "You can fool some of the people all of the time").  But, then, as it always dies, economic reality intruded on the fantasy party. Now, guess what? Real home prices have fallen back to their real economic value. It will probably be, oh, another 30 years before they'll be able to fool another generation.