The U.S. government and corporate media don't talk about how lower house prices are good for home buyers, preferring to sacrifice we the people and families to make sure bankers have plenty of debt to earn interest on. Nevertheless pure and simple economics says lower prices of anything is good for buyers.

Realtors who earn commissions on transactions are quick to say anything to keep the buying and selling going, particularly when there is a sweet commission check involved for them. Yet for homeowners whose properties are declining in value, now is not the time to sell. Moreover losing equity in your home as prices fall is not something which makes for a happy new year.

President Bush's plan to freeze banks teaser rates will likely backfire and produce the reverse effect, meaning banks will stop lending entirely because they cannot be sure that legal contracts will be honored. A freeze therefore will increase uncertainty among bankers and cause them to chill out before making loans considering their risk for doing so has increased.

"Affordability programs" seemingly are meant to help the poor get a new home, often with the help of HUD. However as it pertains to the economy, this potentially has the effect of driving prices higher by locking out more middle-class people. Fannie Mae and Freddie Mac undergird bankers risky loans and step in when borrowers don't pay and anything hits the fan.

The trouble is many buyers borrowed too much money and cannot pay the interest. Foreclosures are now occurring across the country. Meanwhile in Orlando we've got thousands of homes on the market for sale.

In Orange County and across the country, banks happily loaned money provided that the banks could then sell the loan, diverting the risk on to Fannie Mae (essentially and ultimately we the taxpayers) or on to buyers of mortgage backed securities. As the market now adjusts itself to account for years of excess and a trillion dollars in mortgage loans that will not be repaid, Fannie Mae is becoming very cautious and trying to avoid buying risky loans. Simultaneously and understandably investors do not want to buy mortgage backed securities.

This translates into less money available for mortgages, which immediately results in less home buyers. Therefore expect housing prices to continue to fall as mortgages become more difficult to get.

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