Zell blames politicians, accounting rules

Crain's Chicago Business reports on Sam Zell's take on the real estate crash:

Mr. Zell also blamed government programs aimed at increasing homeownership, perhaps not surprising considering his role as chairman of Equity Residential, the nation’s biggest publicly held apartment owner. Historically, about 62% to 65% of U.S. households have owned their home, but the rate peaked at 69.2% in 2004.

“The reality is we keep seeing over and over again that only 62% of the people can afford it,” Mr. Zell said.

He suggested that most homeowners facing foreclosure today are victims of their own bad judgment, not unscrupulous lenders.

“The majority of the foreclosures today — if the truth came out — would generate no sympathy at all,” he said.

And Mr. Zell made it clear he didn’t agree with lawmakers in Washington pushing to provide relief for struggling homeowners. Making it harder for lenders to foreclose on properties will only make them less willing to finance home purchases, he said.

“I think any legislation of any kind that modifies existing contracts is such a slippery slope that, in effect, I think it destroys the country,” he said.

You'll want to read this one.