Wow !!!, interesting stuff on American housing

I just found a very interesting housing website for Americans... I apologise in advance for the length of the post but I found it really interesting (hehe, maybe its just my natural curiosity about life). The Americans (some sectors) certainly look to be in trouble and the attitude of the banks is interesting to say the least, amazing the difference in outcome between recourse and non-recourse loans. The website is

PLEASE NOTE (for those who dont read this properly and call me a doomsayer):

Housing Crash Continues
It's Still A Terrible Time To Buy
By Patrick Killelea, last updated Mon Jan 25 2010

Because house prices will keep falling in most places. Prices are still dangerously high compared to incomes and rents. Banks say a safe mortgage is a maximum of 3 times the buyer's annual income with 20% downpayment. Landlords say a safe price is a maximum of 15 times the house's annual rent.

Yet on the coasts, both those safety rules are still being violated. Buyers are still borrowing 6 times their income and putting only 3% down, and sellers are still asking 30 times annual rent, even after recent price declines. Renting is a cash business that proves what people can really pay based on their salary, not how much they can borrow. Salaries and rents prove that prices will keep falling for a long time. Anyone who bought a "bargain" this time last year is already sitting on a very painful loss.

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i don't know if that applies.

it's about as general as Steven Keen's predictions.

that's like saying Australia's house prices are stagnant, while standing at a Melbourne auction watching it go for $50k over reserve.
Henry George

America is full of interesting characters like Patrick Killilea and it's kind of interesting if you have time to kill what someone's particular beef is. In his case it lies in this sentence:

Ultimately, there should be no income tax at all, only a tax on land values.

He's a Henry George devotee. Henry George believed that taxation should be changed so that just land owners are taxed.
I've always thought it a rather elegant ideology.
Amadio, thanks for seeting me straight. I just found the whole thing interesting and wanted to share it.

Blue Card...Keh? I'm not quite sure what you mean but thanks anyway.