American Housing Problems and Solutions
Greed, greed, greed is written all over the current housing disaster in America. Neither the borrowers, lenders, or politicians can escape the blame for the current housing mess.
The politicians encouraged and allowed the mortgage lenders to create risky subprime mortgage products in an effort to increase home ownership in this country. Then the borrowers accepted those risky subprime mortgages, even though deep down they knew they were getting in over their heads.
Solution: Home buyers and builders need to get back to reality. If you go to any traditional middle-class town in America, and take a look at the homes that were built in the 1950's thru the 1960's; you will see very simple and realtistic homes that average between 800 sq. ft. to no more than 1500 sq. ft.
However, if you look at the sizes of the homes that have been built over the last 10 years especially, they have simply become to large and unrealistic for the average home owner to purchase.
In addition, mortgage lenders should be required to hold onto any mortgage they initially provided for an extended period of time. Too many mortgage lenders, since the early 2000's, have been handing out mortgages like candy, and then dumping them off onto others as quickly as they could.