patrick.net

dunnross says

It would help the economy recover much faster, that's for sure. In fact, if the FED didn't liquidate mark-to-market, bail out all those deadbeat banks, and kept interest rates artificially low, we would be enjoying a real recovery right now. Prices would be 80% lower, but sales would be back to their normal levels. Instead, we have an 80% drop in sales and only a 20% drop in prices (so far) and Japan-style multi-decade decline. You decide which one is better.

This.

Right now the U.S major banks are zombies that are cannibalizing the U.S economy. If we just "liquidate" the infection (bad assets), we can take the short term shock, but steadily return to normal much quicker than Japan which still has a very weak housing market over two decades later.

Boom/Dunross-

Please don't qoute Goran_K. I have him on ignore because he pretends to be above the whole bull vs. bear debate, but really is just a permabear in disguise. And I don't want to see his drivel anymore.

thanks in advance

BoomAndBustCycle says

So, rolling back home prices will lead to less inventory because 1996-2002 buyers now won't have enough equity to sell their homes. It's a catch-22, renters want/need lower home prices, buyers can't AFFORD to sell at lower prices.

No you become the poster child of the RE bubble for many others to remind them of your mistake... therefore they wont in anyway overpay like you did. Eventually the owners will sell, take a loss to get rid of their own low savings rate.