HangingOnByAThread

Is the U.S. Banking System Safe?

Excellent article. While I know all home values are or will be impacted by credit crunch, escalating foreclosures and the increase in interest rates that will surely occur, is there a way to estimate the potential impact in various areas. Many areas experienced explosive price increases while other areas appreciated more modestly, yet most of the charts I see re. the change in home values are on a national level. I live in the Raleigh NC area, and would like to see trending data / charts that are more regional, especially re. any estimated percent decline. Is there a place to find such information. Thanks.

Calling a Housing Bottom

Would be interested to hear your perspective on how the mortgage refinancing legislation will impact a potential bottom to the housing market. It seems it does nothing to truly create a bottom, but only slows the decline in home prices, ensuring those purchasing today will watch their home value decline over time. Am curious what happens to those that find themselves upside down re. home value to mortgage in the future. Is there a safety net for these folks say 5 - 10 years out?

Fast and Easy Fannie

So there's plenty of blame to go around (borrowers, lenders, mortgage brokers, bankers, builders, etc.) in varying degrees depending on the circumstances. Meanwhile, the holders of these toxic mortgages are slowly transferring them off their balance sheets and onto the balance sheets of government backed entitites, in one way or another. So those of us that thought we were being responsible are the very same who will foot the bill by lower home equity, lower real value in your retirement accounts and ultimately higher taxes. While the investment banks, builders, etc. that made plenty of profits on the upside are not accountable on the downside. Their stock value may declide temporarily, but as they transfer these bad debts to government back entities (you and I), their value will surely recover. There you have it. Our government at work. And by the way, you home buyers looking for a good deal, be ready to watch that down payment your going to be required to pay evaporate as the value of that home continues to fall, thanks to your government letting the air out slowly, and essentially transferring your dollars back to the investment banks.