Piercing of the Housing Bubble

What serendipity! Related to what's going on in Burlington...

Richard Estes at American Leftist: Random Observations on the Piercing of the Housing Bubble -

On unaffordable housing [already a problem in Burlington]

We all know that health care is increasingly unaffordable to many Americans, and that the coverage that they receive, if they can afford it, is often mediocre. Sicko merely gave cinematic expression to the lived experiences of millions. We are now discovering, as a consequence of the housing bubble, that housing, as measured by home ownership, is also increasingly unaffordable to many people as well. This is true revelation of the proliferation of exotic credit instruments for home purchases in recent years.

Once thriving towns become ghost towns [Burlington's future?]

Of course, they now have their own problems, as you can read on all over the web, but what about the people who are losing their homes? What is going to happen to them? The answer is, as we all know, it is going to be brutal. Many of them are going to be pushed into the rental market for the rest of their lives, and many are going to have to leave the locations where they currently reside because even the cost of rent is going to be too much for them. So, we are looking at the prospect of two migrations, one from houses to rentals, and the other from expensive parts of the country to less expensive ones. Furthermore, quite a number of communities built for home owners will rapidly become rental ones. Some may even resemble ghost towns, as it becomes impossible to fill all of the homes with residents.

Read all of Richard's post here

Related, from The Oil Drum July 30, 2007 - As the bubble unwinds (or pops), it is essential to make it clear that it should not be workers, or taxpayers, that end up paying for the recklessness of the financiers, and that those that gorged on the good times should bear the pain of the new, leaner times. A commenter on the OD post calls for the abolishment of the personhood of corporations.