No Free Houses for Deadbeats

Both McCain and Obama want to give away free houses to deadbeats who won't pay their mortgage in a crazy attempt to prop up house prices. Not only is this unfair, it can't work. House prices must be in line with what people can afford.

What's the "War on Savings?"

The "Stimulus Package", the Wall Street Bailout, and lower interest rates are simply a tax on the few-percentage of Americans who have saved money! We're rewarding borrowing and spending and the expense of saving and investing.

The War on Savings will destroy the United States of America.

There's NO Housing Crisis

Let me be clear: There was a housing crisis. It was when the median house price was 10x median income, and every unemployed deadbeat could qualify for a mortgage.

Now that housing prices are coming down to their proper levels, it's more accurate to say the housing crisis is ending. It will be completely over, in fact, when median house price is about 2.5x median income, with a range of 2x to 3x.

In 1955 Levitt built one of his "Levittown" developments in New Jersey.

These houses were priced at $11,000. Median salary was $5,000. People simply can't afford to pay more than 3x their salary. House prices have been carefully recorded for hundreds of years, and it's a fact that house prices will always track salaries

Except they didn't! Misguided policies to make houses "affordable" by making it easy to get loans, caused house prices to escalate. Millions of Americans bought houses they couldn't possibly afford assuming that someone would be there to make it all work out. Sadly, they were right and that someone is the few percent of Americans who actually pay taxes and have savings accounts.

Here's your WarOnSavings.com homework assignment for today: Next time you see a newspaper talk about the housing crisis, send them a letter telling them that the crisis was last year, and now it's finally ending. It's been replaced by a savings crisis--as responsible savers are being raped so deadbeats can stay in their McMansions.