Housing slump? Caused by no credit? How about caused by prices so high that most of the middle class cannot afford to buy the kitchen in a median price house now at 650K and higher. Several observers are looking at home prices in various parts of the country and finding that in most sections less than 10% of their populations can afford to buy a house at current prices. How far do prices have to drop til the middle class can afford them? A lot, due mainly to the fucking Boomers downsizing into smaller homes and condos because their kids have left the nest. You must always be aware of the effect this huge most self centered of generations (numerically the largest) has had on our economy since 1960 when by sheer overwhelming numbers their tastes and desires changed the entire culture and economy. Since they were in high school they have always been indulged, their whims always granted, and if they don't get what they "want" they will have a collective tantrum and organize a movement, one that will mobilize millions. Their housing will be a problem if their value drops too low for them to "rotate out" (at a profit, natch) and into cozier pads. Among the Boomer "rights" is the one that guarantees a profit when you sell a house. I think this housing "crises" may not have an end in sight. Credit hasn't got all that much to do with it.

Boomers will want socialism so they don't have to pay for everything. Guaranteed. Good link HERE.