Should the government bailout real estate?

Today's Financial News - Posted August 29, 2008

“In the wake of a bubble popping, you often hear another phrase, which may well qualify as the second-most expensive four words in the English language. And we’re hearing it more and more from the property pundits, politicians and City hotshots who stand to lose most from the looming recession.” — John Stepek

Blogger’s note: Ever notice that the only people calling for government intervention in the real estate industry are those who could lose their jobs or their profits if the government doesn’t bail them out? John Stepek of the UK’s MoneyWeek has a few things to say about government bailouts, whether that government is in the U.S. or Britain. Should your tax money help out home buyers in the hopes of propping up the property market? Or should homebuilders and realtors take their medicine and stop whining about government intervention?

by John Stepek

Baltimore — (TFN): The late great Sir John Templeton warned that the four most expensive words in the English language are “it’s different this time.”

He was absolutely right. You usually hear those words at the frenzy stage of an investment bubble, when there’s no conceivable sensible reason for prices to go any higher, and vested interests have to clutch at straws to promote their arguments. Just ask anyone who bought property stocks a year ago, or tech stocks in 2000.

But in the wake of a bubble popping, you often hear another phrase, which may well qualify as the second-most expensive four words in the English language. And we’re hearing it more and more from the property pundits, politicians and City hotshots who stand to lose most from the looming recession.

It’s that whiney little mantra, “something must be done!”

Property pundits are calling for government intervention

We have to do something to save the property market. Or so everyone who makes money from the property market is saying. Read on to learn more.

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