The cult of home ownership is dangerous and damaging – Adam Posen –

This is an excellent, MUST READ article by Adam Posen, president of the Peterson Institute for International Economics and is published in the FT.

via The cult of home ownership is dangerous and damaging –

The article highlights the risks at both the individual and national level of the home ownership cult, especially in the US and the UK.

These days, home ownership favors the wealthy and inherited wealth. The article cites latest research in the US that home ownership impacts mobility and aggravates unemployment. The financial crisis started in the US in 2008, and was triggered by sub-prime mortgages supporting home loans to the less advantaged. Now, once again, the big US banks are booming, and both the US and the UK governments are propping up the housing market.

Surely, the UK Government should be subsidizing language training rather than mortgage finance, and encouraging more people to go overseas to the likes of Germany where jobs are more plentiful?

U.S. Subprime lending expanded dramatically 20...

U.S. Subprime lending expanded dramatically 2004-2006 (Photo credit: Wikipedia)

Any thoughts?

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