From American Dream to Nightmare on Main St.

Whether you agree or disagree with the bearish views on this housing blog, you’re here because you’re interested in the state of the housing market. Unlike the stock market or other financial sectors where participation is voluntary, the housing market is not. Everyone needs a place to live – rent or own.

From the early days of civilization to the ever changing world of the 21st century, humans have sought for a place to call home – a place of their own. While a house provides shelter from the elements and a place to sleep, a home provides a sense of security and belonging. There is no doubt the biggest part of the American Dream is the home itself.

It’s understandable why people desire a piece of that pie, but it seems that our society has forgotten the means by which to attain it. Through its history, America has prided itself as the land of opportunities – if you work for it, you can achieve anything. However, instead of working hard and saving money, we’ve become a nation of debtors. A nation of residents with rampant credit card debts, negative savings and no solid plans for retirement. This would normally be balanced out and corrected with a healthy dose of financial responsibility, but the negligence of the government and the greed of Wall Street kept the kool-aid fountain flowing for years.


Either through uncontrolled consumerism or immense greed, our society has bred the wrongful mentality of rightful home ownership. If you didn’t know any better and all you witnessed was the frenzy of the last few years, you would think that home ownership is a right, not a privilege. Only prudent, financially responsible, law-abiding people should have the privilege to own a home. Sadly, that was not the case during the bubble.

In the last half decade, many people disregarded any sort of market fundamentals and overstretched themselves to buy a piece of the American Dream. Some risked their life savings and others risked nothing more than their credit, but they all wanted it without considering the consequences of their actions. It amazes me that people can’t understand the simple concept of Don’t-Spend-More-Than-You-Make.


Many of these dreamers didn’t just want any home. They wanted their dream home complete with a three car garage, gourmet kitchen, pergo floors, loving wife and 2.4 kids. It’s a lovely thought, but because of their irresponsible actions, it will soon be nothing more than a fleeting thought. Yes, the American Dream is worth pursuing, but doing so through unethical and irresponsible means will turn that dream into a nightmare faster than you can say foreclosure.