How to Help the Housing Market Recover

How hard is this?

Would anyone like a recipe for restoring home prices or any other form of real estate?

Which people need government help?

It seems like our government keeps trying to bail out the helpless. In some cases, this is okay. On an individual level, we all need a lift now and then. I am pretty sure that most government aid programs INITIALLY intended to target those people with mostly good habits who happen to crash into a big pile of bad luck.

Okay...Let's give them a hand so that they get on their feet and return to being productive.

However, there are many other people who see these other people benefiting, and they suddenly feel entitled to "their share."

Politically, I get that there are some people beyond help who will behave better for the entire population if we "give" them enough to survive. Otherwise, many of these people will turn to more aggressive types of activity that will likely cost us more than we're paying them.

Here you go! Here is your "free" handout. Essentially, this is a bribe for these people to mostly behave themselves.

Both of these groups are worth helping for different reasons, and they are not part of my "recipe" for real estate recovery. The recipe does not involve throwing good money after bad.

My 16 Predictions for 2011 (and Beyond)

Happy New Year!

I know that this picture doesn't have anything to do with investing, but I think it's a cute picture. I have a soft spot for things that make me smile.

You didn't click to hear me explain my picture, you want to know my predictions (maybe not MY predictions but just predictions in general).

So without making you wait any longer, here are MY predictions for 2011 and beyond: