
The federal reserve in conjunction with government officials are working diligently to reflate the housing bubble. Banks are still exposed to $1 trillion in unsecured mortgage debt, so reflating the bubble is considered necessary to restore collateral backing to lender's bad loans. Whether or not this is a good idea depends on your perspective. If you're a renter whose tax dollars are being diverted toward this endeavor, these efforts are not particularly welcome. Renters receive no benefit from this intervention, and the resulting high home prices make it more costly for renters to become homeowners, so it's a double whammy. If you're a homeowner, it's a very welcome government intervention. It costs homeowners nothing, and they get all the benefits.…[READ MORE]