“This is misleading. It’s really the combination of declining prices AND the inability to pay.”
I agree with the article. Think about the psychology of it: Why would a buyer want to keep his home if his equity is now negative and probably won’t reverse for a long time-if ever? People aren’t going to do anything that isn’t in their own best interests. That’s what this thread is all about.
So, yeah, the bailout won’t keep the market from tanking.
