Government can't do a blessed thing about the housing market when it comes right down to it, the same as they can't help the job market except to fund worthless projects at taxpayers expense (and the national debt).<quoted text>
What is the Democrats plan? What is wrong with the housing market? Homes are so much more affordable and interest rates are very low. What is wrong with the jobs market? The unemployment number keeps getting better.
The problem with housing is that borrowers are now required to be able to make payments and those who can have gone after the foreclosed homes. So have investors, to take advantage of the tax deductions deprecation offers so they can off-set other income.
With those houses now largely off the market, along with the people with a good credit rating, the cost of building new housing (material costs) is once again out through the roof - with no qualified buyers left.
To put it in simpler terms: a foreclosed house sells for, say,$200,000 but to build the exact same house, because of the cost for materials, it could cost as much as $300,000, maybe more! Adding to the problem, there are more people who can qualify for a $200,000 loan than can for one for $300,000. Another problem; houses no longer appreciate in value yet property taxes and maintenance cost continue to escalate. Want another one? Banks find it safer to invest in the stock market than in providing loans.
Now what in the hell can government do about that?