Residential real estate, that depreciating consumption expense long crazily touted as an investment, is gradually returning to reality, though, thanks to all the federal price supports, it has some way to go. In the San Franciso Bay Area, the newspapers are shocked at houses for sale at less than $100,000. In San Pablo, a house that went for $440,000 in 2006 can be had for $95,000. In Vallejo, a house that was $185,000 in 2006 is now $79,000. And in Pittsburg, it’s $372,000 to $84,900. These asking prices have ome way to fall, however, now that the Fed’s bubble has popped. There’s a reason this is called a correction. Young families need to save for the future, not consume and run up unsustainable debts through nutty prices for houses.

The Best of Llewellyn H. Rockwell, Jr.