Professor Elam

The one person for whom there is no compassion is the taxpayer.

Professor Tom Sowell deconstructs the nonsense going on about housing prices.

Prof Elam Observation

I am weary of hearing politicians bemoan people losing their houses. If those people owned their houses they would not be losing them. Buying  a house with nothing down and a thiry year mortgage is not ownership. It is pure and simple a lottery ticket betting on increasing home prices using leverage hoping  one can flip the house and make something for no investment at all. No wonder people are walking away. Meanwhile, as Sowell says, all those politicians in California made housing more expenisve by passing restrictions on building. Now those houses are much much cheaper, gee isn't taha the solution. Indeed, lots of things are cheaper now.  Everywhere I look retailers are having two for one sales, even on homes and cars. The economic collapse will do just what was needed, this year more cars will be removed from the roads than added, a first in many years. Now that will shrink the carbon footprint more than any Al Gore scheme in Washington DC.

The students who read this blog are betting on their future by foregoing consumption now to invest in their business education.  Making a short term sacrifice for a longer term goal is what saving and investing is all about.