k45

Foreclosure Moratoriums: It's Time to Get Real

If we keep people in houses they cannot afford, we keep the housing prices too high so that deserving people cannot afford them.

Housing prices have to come down to historical norms. Until then, houses are overpriced and wise thinking people cannot afford them.

The bubble HAS to be worked off. Anything that tries to maintain the status quo just extends the bubble. Eventually it HAS to be worked off. Until that point, the pain continues.

Never Listen to the Rating Agencies

GE bonds have been trading with yields 2% higher than AA rated bonds. Obviously the market knows a lot more than "Johnny come lately" S&P.

But two years? Yes, S&P obviously makes their ratings by looking in the rear view mirror. By then GE either will be past the problem, or will have crumbled. Either way, an honest assessment would have downgraded GE months ago. The market already did.