We are all Subprime borrowers at some level of debt. Just ask Suze Orman :) .
We have ourselves to blame first and foremost for the mess. Two years ago, I realized I was stressed about our big house. It was not so much the payment, it was the other monthly crap.
The house owned me!
Luckily for us, the market was super hot and we had a buyer the first week. We downsized. Cleared my head and lot’s of good things have hapopened.
The real housing problem is one much worse than stocks. People assume that their home is an APPRECIATING asset – all the time. They will hang on for dear lives. Unlike the stock market where you can ‘hit the bid’, that is not always possible with a home. Lot’s of hidden taxes that have been rising while you bought your home and ‘stretched’ for the financing.
Good, but I still blame the individual. No matter, many will hang.