Thomas Sowell on Housing Crisis

Professor Sowell describes with clarity why the continuing government interventions into housing likely make the problem worse. We continually hear about the large number of homeowners "underwater" on their mortgages (current value is less than the mortgage). Unless someone needs to sell the current value is not relevant. Much like a 30 year old saying they have "lost money" in their 401-k (value less than cumulative contributions). Unless they plan to retire next week the current value matters little. Mortgage rates may rise and prices fall further still before the housing crisis ends.