Friday, Mar 05, 2010
Another wave of US foreclosures and a large overhang of 'dark capacity'
Financial Times: America must help its home owners
The author argues that the US government will have to step in over the next couple of years to buy-up almost $1 trillion of mortgages from banks. 25% of US householders' mortgages are under water, the prices for new-build are lower than 7 years ago, and a new crash is expected unless banks take a big haircut on the principal on these loans (i.e. the capital, not just the interest rate, is reduced) - meaning big write-offs for the banks.
Carnage for the banks, or carnage for the government.
Posted by notyethomeless @ 12:29 PM (135 views) Add Comment
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
No comments have been submitted.
Be the first person to add your comment by completing the form below.