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Liked It “This book goes further into the housing bust problem that did "Meltdown." It goes further in that it makes the case on how "land use restriction" laws caused certain geographic areas to have large increases in the cost of housing which therefore led to "creative and innovative" lending and...” see full review » see other reviews » |
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“This book goes further into the housing bust problem that did "Meltdown." It goes further in that it makes the case on how "land use restriction" laws caused certain geographic areas to have large increases in the cost of housing which therefore led to "creative and innovative" lending and financing.
David K wrote this review Wednesday, August 19 2009. ( reply | permalink ) Was this review helpful? Yes | No
Sowell also points out how that land use restriction laws are used to keep "less desirable" low and middle income homeowners out of the more exclusive neighborhoods. Throughout, this book is interesting an insightful.”
“CC 8-13-09
Clint C wrote this review Thursday, August 13 2009. ( reply | permalink ) Was this review helpful? Yes | No
as usual Sowell lays it all out
a clear, concise expo of the housing bust
recommended
”
“Once again, reading Thomas Sowell is like chewing on nails--he's so logical, fact driven, empirical evidence guided, and politically incorrect. All traits you need when seeking the truth. This is no blame game book. Sowell blames both parties for the housing debacle, as well as Fannie Mae and Freddie Mac, whose "profit was privatized but their risk was socialized," according to the Wall Street Journal. Sowell points out the California home prices during the 1970s due to zoning laws, building restrictions, land use policy, etc. The common myth is that rising incomes drove California home prices high, but Houston had the same rising income and had some of the most affordable housing in the country. Las Vegas' population tripled between 1980 and 2000 but the median price of housing didn't change in real terms. Obviously, governmental restrictions have a dominating effect on housing prices.
Ron B wrote this review Thursday, June 4 2009. ( reply | permalink ) Was this review helpful? Yes | No
Sowell also disabuses the notion that "greed" or predatory lending were the cause of the crisis, pointing out that the Federal Reserve doesn't even have a definition of "predatory lending." Hard to blame something you can't define clearly. And greed is a constant, and you can't blame change on a constant. Sowell dissects the notion of "affordable housing," another very elastic concept defined by politicians and activists, not the market itself. The financial sector is one of the most regulated industries in the nation. It's hard to think of one thing a bank does that isn't regulated. The call for more regulation ignores all the evidence before us that it wasn't lack of regulation, but the incentive structure created by government system of moral hazard that caused this crisis.
Nobody could explain this in less than 150 pages so succinctly, cogently, and brilliantly as Thomas Sowell. A must read if you want to understand what got us into this mess, and how to avoid one in the future (I doubt we will, since the politician never learns anything from the second kick of the mule).”
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