Real estate to become regulated

[Account Closed]

It seems that there is more and more talk about how any future housing bubble will be prevented. Bankers and monetary officials are discussing using interest rates and other means to prevent this in the future.

I don't know about you, but this doesn't sound like a good thing.

Here is one article discussing this.

http://www.washingtonpost.com/wp-dyn/content/article/2010/07/26/AR2010072603338_2.html?sid=ST2010072605862

[Don Konipol]

Government regulation always backfires for numerous reasons, not the least of which is the law of unintended consequences. Governments always think that they are brighter than the private citizen and therefore they should control money decisions since otherwise the free market will screw it up. The fact that just the opposite has been proven time and time again in no way lessens the politician's arrogance.

"When I remember how many of my private schemes have miscarried; how speculations have failed, agents proved dishonest, marriage been a disappointment; how I did but pauperize the relative I sought to help; how my carefully governed son has turned out worse than most children; how the thing I desperately strove against as a misfortune did me immense good; how while the objects I ardently persued brought me little happiness when gained; most of my pleasures have come from unexpected sources; when I recall these and hosts of like facts, I am struck with the incompetence of my intellect to prescribe for society"
---Herbert Spencer