Story Comments
Posted by: Jayson 1 year, 1 month ago
This page is a permanent archive of the comment below and its replies.
To view this comment in the context of the full discussion for the story, use this link.
-
-
Neutral
nostalgia1 year, 1 month ago
This comment is below the standard viewing threshold View It »
"The big question: Will it work?"
Reply
In a single word NO
Keep in mind that the problem now is the subprime loans for middle and lower income people. Even if the mortgages are "re-negotiated" many of these people still won't be able to afford the mortgage
Real estate prices have always been cyclic. They are trying to put a floor under home prices. Let's say they can accomplish that. Home prices will stay where they are now. Who is left that can afford to buy?? That's why the subprime mortgages were started to begin with - home prices were too high and most people couldn't afford them
The housing bubble needs to be deflated not propped up
Next year the first Jumbo loans are due for the interest rates to be reset. Are we going to bailout those people too?
Japan tried this same scheme of infusing money into banks and ended up in a recession that lasted for a decade
All this "stabilization" is going to do is create a recession that is deeper and longer lasting than what would have happened without government intervention
-
loading ...
People Who Liked This Comment (0)
No one voted this comment positively. Is it really that bad of a comment?
People Who Didn't Like This Comment (0)
No one voted this comment negatively.
Post Reply
You are not signed in to Propeller.com. Please sign in to post a reply.