Moral hazard and the housing market

Former student John Tamny writes on the long term effects of a housing bailout:

...the message presently being sent to investors is to park cash in property as opposed to stocks. Innocuous at first, until we consider that tomorrow’s entrepreneurs are fully reliant on the savings of others. Simply put, capital invested in property is just that, as opposed to savings and investment that fund the various established firms and entrepreneurial concepts that employ us. If allegedly benevolent politicians make housing sacrosanct such that market uncertainty is a thing of the past, this will eventually materialize in tighter credit for the commercial entities in our midst that create real wealth.