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There’s no guarantee these days
By Byron McNutt

FAMED WALL Street guru Byron Wien calls it “the dumbest idea in the economic history of the United States.” He was referring to the overly optimistic federal policy that said “every American should own their own home.”
Wien, the 79-year-old dean of Wall Street forecasters, says the policy just
wasn’t realistic. It required people to take on massive personal debt when they simply couldn’t afford it. Then the government made it worse when it guaranteed these unsustainable loans.
Because it seemed like a good investment, people bought homes with inflated prices, thinking inflation would bail them out. Buying a home is a good goal for most people, but buyers must make sure not to buy a home out of their mortgage comfort zone. Then the housing bubble burst.

Tuesday, July 31, 2012 3:12 PM

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