I’ve always thought that raising limits would only make things worse.
It’s an ignorant excuse IMO to think that tightened lending standards are why prices are dropping. These are lending standards we should had have all along.
It’s no surprise rates are higher now, but even if they were lower it wouldn’t change the fact that incomes are nowhere near where they need to be to support these prices.
Tighter standards are only going to slow sales moving forward, they have nothing to do with the number of people facing negative equity, default and foreclosure.
The media calls this a credit crisis, but as someone else said it’s really a debt, and lack of income crisis. I guess you could also add lack of intelligence, common sense, and prudence.
