It wasn't the "average" home buyer who got us into the current real estate mess. Most folks buying a house in the last five years or so, even if they knew they were paying prices that seemed just a bit over the top, were buying for any of the reasons that make perfect sense in any market: they needed a bigger house for a growing family, they relocated for a better job, they wanted more modern amenities and remodeling the old house didn't make economic sense, they wanted better schools for their kids, they retired, etc.
Who did get us into this mess? Real estate investors flipping condos they never intended to buy, mortgage lenders pushing inappropriate products on overly stretched borrowers, Wall Street investors who in their greed snapped up those questionable loans, home builders rushing to construct units ahead of real demand, banking regulators who sat and watched, etc.
You know, though, who is going to pay the most for the debacle. It will be "average" homeowners, who now will be lucky to get a mortgage of any kind if they need to move up or move on, assuming they even can move at all, given how chilly the market has become and how shaky their home price is looking. The only bailout for most people will come in the form of years of waiting for a return to normalcy.
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