Lawrence Roberts, author of “The Great Housing Bubble,” claims the main problem with all bailout plans is the moral hazard they create.He contends, “Those who did not participate in the bubble and instead behaved in a prudent manner would be penalized at the expense of those who were cavalier about risk.In one form or another either through free market impacts or direct subsidies from the government paid by tax dollars, these bailout plans all ask the cautious to support the reckless.”
Roberts observes that many homeowners held out hope that if they could just keep current on their mortgage long enough, the government would come to their rescue in the form of a mandated bailout program. According to Roberts, part of this fantasy was not just that people could keep their homes, but that they could keep living their lifestyle as they did during the bubble. He notes that few borrowers seem to realize was any government bailout program would be designed to benefit the lenders by keeping borrowers in a perpetual state of indentured servitude, and with all their money going toward debt service payments, little was going to be left over for living a life.
Housing bailout proposals are part of the myriad of issues surrounding the housing bubble. Roberts discusses each of these issues in detail in the book, “The Great Housing Bubble.”
About the Author and Publisher
Lawrence Roberts, author of “The Great Housing Bubble,” is known as the Housing Bubble Cassandra. He publicly predicted the housing price crash as the primary writer for the Irvine Housing Blog. From his unique vantage point in Irvine, Calif. ??" the center of the subprime universe ??" Roberts carefully documents in his book the conditions and practices that inflated the largest real estate bubble in history. He holds a Master of Science in Land Development from Texas A&M University, and he consultants to the land development industry.
Monterey Cypress Publishing is a small press specializing in real estate and personal finance related books, audio books, and video presentations.
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All Housing Bailout Proposals Are Doomed to Fail,Says Lawrence Roberts in New Book
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