We may be in a rapidly evolving international financial system with all the bells and whistles of the so-called new economy. But the old-economy rules of prudence are as formidable as ever. We violate them at our own peril.
The only sustainable way to increase demand for vacant houses is to spur the formation of new households. Admitting more skilled immigrants, who tend to earn enough to buy homes, would accomplish that while paying other dividends to the U.S. economy.
A decline in the national housing price level would need to be substantial to trigger a significant rise in foreclosures, because the vast majority of homeowners have built up substantial equity in their homes despite large mortgage.
![Alan Greenspan Quote - We ought to be opening up our borders to skilled labour from all parts of the world because [the state of the world is as follows: ].](https://minimalistquotes.com/wp-content/uploads/2022/08/we-ought-to-be-opening-up-our-borders-to-skilled-l-683x1024.jpg)
