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July 03, 2007



Home prices rose very high in some areas of the country in the last 10 years. Here on Long Island, prices have gone up 3 to 400 percent since the last pricing downturn in the 90s. We bought in 2001 so "only" gained 200 percent.

My mom's home price rose only about 100% in 25 years of home ownership in Fayetteville, NC. I know because I just sold her house in June. Nice solid growth, but paltry compared to Long Island.

The people and institutions that get hurt the most by the recent (rapid) downturn in home prices are the ones who speculated, hoping for high returns on short term investments. Idiots, all of them.

I would like to see laws passed (and enforced), getting us back to the days when you had to have several times earnings to earn the right to buy a mortgage. As "parental" as these laws where, they had their intended effect, largely keeping homeownership out of the hands of people who didn't earn enough to *buy* them. (I as going to say *own* but with zero or negative equity, what ownership ever existed?)

Putting off major mortgage business reform hurts every one. Lets get going.

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