The far left and their lackeys, mostly members of the democrat party, have been engaged in social engineering for the past 45 + years. The housing debacle that we are now dealing with is but one of the results that such social engineering has produced. To force banks and other lenders to give loans to people that do not have the ability to repay the loan, in the name of “political correctness,” is criminal. As long as these far left demagogues can achieve their goals of appearing to care more than anyone else, they do not care how much taxpayer money they spend. There have always been pockets of “Boom and Bust” in the real-estate market, but as long as the free market has been allowed to work, this type of catastrophic collapse has been avoided. To force me to pay for others’ corrupt borrowing and lending polices is legalized robbery. Legalized robbery is when the government forces me to send in the taxes they have levied with the threat that if I do not comply, they will come to my house with a gun and force me to do so.

Santa Monica's home prices are not sky high because the government is not allowing building. It's a hugely desirable area to live with a limited supply of land.

Are you are suggesting that the city re-zone residential districts to allow for towers of condominiums, thereby destroying neighborhoods?

I don't think this is a good solution.

Further, one of the hardest hit areas of price contraction is out in the Inland Empire where new construction was rampant. This seems to fly in the face of the author's conclusion.

Socialization of the housing market through excessive intervention is without precedent, the housing market must be allowed normal correction and foreclosure process and banks must take responsibility for their bad financing decissions, including buyers of those loans like Fannie and Freddie. Bailing out borrowers, other than those who were defrauded, is contrary to free market principals. Bailing out banks, other than those who were defrauded by mortgage brokers, is contrary to free market principals.

Please use correct statistical data when making your next statement on housing.

I do not know who your real estate analyst is but I recommend they enhance their education on actual market conditions and long term localized trends and rate of change in localized trens.

Your statement fails on these points, presenting a flawed argument contrary to conservative planning of related policy.

Regards,

James Reginald Harris, Jr.