We’ve all heard of the so-called American Dream: homeownership.But given the state of things today, one could argue that for manyhomeowners, it’s become a nightmare.

Housing had been a good bet for much of the 20th Century.Government officials and the business community lauded housing as agood investment for Americans after World War II, when soldiersreturned to US soil and new household formation began—and theAmerican public bought in. It worked for years; families grew,generating demand for more housing, and home valued consistentlyappreciated, due in part to inflation, reasonable mortgage ratesand beneficial tax policies.

And then the boom years hit. As this decade progressed, themantra of “homeownership at all costs” pervaded the Americanmindset, largely due to government policy of promotinghomeownership, declining interest rates and relaxed lendingstandards. Folks who bought homes as early as the mid- to late1990s saw huge returns when they sold them a decade later.