Twelve years into the 21st century, the dominant financial and economic fact is that we are still living in the wake of athe vast housing and mortgage bubble, which peaked in mid-2006, almost six years ago.  

As the United States approaches the bottom of the housing bust, American Enterprise Institute (AEI) housing expert Alex Pollock explains in a recently published piece that there are seven necessary steps to avoid another housing collapse.

The fat years of the housing bubble lasted from 1999 to 2006 - seven years. The bubble was deflating by the beginning of 2007 and collapsed into the panics of 2007-09. Since then we have been struggling in its deflated wake. If we get the Biblical sum of seven lean years, the housing and related debt markets will bottom in 2013 - not a bad forecast. 

The U.S. housing finance market should be governed without direct government financial support, Fannie Mae or Freddie Mac.

AEI's latest housing finance plan eliminates the need for government guarantees and permits the gradual elimination of Fannie Mae and Freddie Mac.

The US housing finance market should function without any direct government financial support. It should also ensure mortgage quality, a stable budget for assistance to low-income families, and eliminate Fannie and Freddie.

"Taking the Government out of Housing Finance: Principles for Reforming the Housing Finance Market" is designed to provide common ground around which a bipartisan agreement may be forged. Join us for the first presentation of this document and a chance to ask questions and participate in a general discussion.