Real Estate Market Update with Bill Gross

Ronald Reagan famously said that the most dangerous words in the English language are 'I am from the federal government and I am here to help." One area that is obviously true is in the area of housing policy, where are the federal government has consistently increased its role over the past 90 years the results have gotten worse.

In business, we are held accountable for our results. If I don't sell a home or do it properly, I get fired. I only get more business when I do well. That's also true in sports. A team that loses results in coaches, players, and management getting fired. Only in the US government do incompetent idiots keep their jobs, get raises, and promoted, year after year. Its the same people with the same problems, just new excuses. 

As I reviewed the news for this week's podcast, I notice how almost every story is a case where the truth is obvious, but someone in our government is telling us otherwise. What is going on? 

Each week, Bill reviews the current state of real estate.

Somewhere, in accordance with the fears of our founding fathers, the federal government morphed from servicing the country to servicing their own personal and financial needs. While this transition was often hard to see, now we have government officials saying this almost out loud, and it is clear in the real estate industry.

When I was young, the American Dream was to buy your home with a bedroom for each child, a white picket fence, yard in front to share with neighbors, yard in the back for your kids to play. Increasingly, that is getting harder and harder in the US. But its not an accident, it is a feature and goal of our government. How can I say that?

The real estate news seems to bounce back and forth between finding bad actors to blame for housing problems and the "affordability crisis," as though it is some sort of virus that has just come into our economy. But there is a simple explanation, its just that the government and their pandering news organizations don't like the answer because it points accountability back to them.

When government officials or their marketing division, the press, say they are working on housing "affordability" or pass a program to solve it, they are lying. That's the only conclusion in that these programs do not work, have not worked, and will never work.