No. Falling home prices are not the root cause of the current mess. The root cause of the problem in housing today is that, for the last twenty years, the U.S. has had a "bubble economy" where money flows from one asset class to another, inflating prices beyond any reasonable measure of fair value.
By any historical standard, home prices are still too high. To think that if we can just stop home prices from falling and then, maybe, get them to go back up is a child-like view of the fundamental problems facing us today.
Until more people realize this, progress toward real solutions will not be made.
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