Solve the Housing Crisis: Let in More Immigrants Buy Houses

[valeriypi]

The already crumbling housing market could plummet an additional 20%, says Gary Shilling, president of A. Gary Shilling & Co., and author of the popular INSIGHT newsletter.

Although housing is already down 25% peak-to-trough based on the latest S&P/Case-Shiller numbers, there's no near-term bottom in sight, says Shilling, one economist who presciently saw the crash coming.

Excess inventory - nearly a year's worth supply - is the "mortal enemy" of any recovery in housing, says Shilling, who does not believe the Fed's efforts to lower mortgage rates will resolve the crisis.

Barring a prolonged period of weaker prices, Shilling believes only radical action - like bulldozing homes or letting immigrants into America to buy homes - can solve the crisis, as detailed here last month.

http://finance.yahoo.com/tech-ticker/ar ... qq,kbh,len

In order to prevent another disastrous wave of foreclosures and stem the decline in home prices, America should allow in more immigrants and give them incentives to buy homes, says Gary Shilling, president of A. Gary Shilling & Co.

A smaller version of this plan was successful in Canada and Shilling notes it could be combined with an expansion of the H1-B visas that Silicon Valley says are in such short supply.

If "letting in more immigrants to buy houses" sounds like a drastic step, that's because drastic action is needed.

Because there's too much inventory of unsold homes and not enough qualified buyers to soak it up, lower mortgage rates won't save the housing market, Shilling says. That's especially true with unemployment rising and a "deflation mindset" among potential buyers (i.e., the longer you wait, the lower prices will go).

A noted and notable bear, Shilling predicts the following will occur unless drastic action is taken:

Average U.S. home prices will fall another 20% from current levels, bringing the peak-to-trough decline to 37%.
If prices ultimately do fall 37%, 25 million Americans — or about 50% of all U.S. homeowners with a mortgage — will be underwater, meaning their house will be worth less than their mortgage.
Millions of Americans won't be able to make mortgage payments, even if they're able to refi at today's low rates.

[Mapycbka]

If prices ultimately do fall 37%, 25 million Americans — or about 50% of all U.S. homeowners with a mortgage — will be underwater, meaning their house will be worth less than their mortgage.
Millions of Americans won't be able to make mortgage payments, even if they're able to refi at today's low rates.

Кто-нибудь может обьъснить как из первого следует второе? Или не следует? Тогда откуда такой вывoд?

[cybopob]

да статья вобще бред. Кризис как раз изза того что надавали всяким иммигрантам мортгеджей которые те потом не платили .
предлагают больному раком еще накидать раковых опухолей побольше, типа клин клином вышибают...