[quote=jpinpb]If I’m to believe what I hear from various sources, including Mr. Mortgage, we’re looking at trillions and trillions that was pumped into the economy from about 2001 to 2007.
Can the government really rescue this crisis? Are they prepared to throw trillions into this?
Another thing: This economy was booming until recently. It went from the dotcom to real estate. Please consider everything that boosted our economy, b/c it was related in one way or another to real estate.
What will make our economy flourish again? We have to make our economy grow. What will create jobs that will replace the job losses in real estate and provide money that the ATM house machines were once dispensing?[/quote]
Agreed. Even if there are a plethora of govt programs to stem foreclosures and keep people in their homes, 45% of people (quote from Freddie Mac) don’t even want a “workout” unless it will give them positive equity in their home. They are walking even when the GSE is trying to help them. This is the case with the banks too.
If they can’t feel wealth from their home, they don’t have any incentive to stay in them.
Even if the govt does enact any or all of these new programs, they won’t be around for very long once they figure out that people are taking the write down and still walking away, inevitably foreclosing.
Until housing comes back to equilibrium with incomes, foreclosures are going to keep rolling, unless of course they pass new policies that force more “creative” mortgage financing, which got us into this mess in the first place.
