29th March 2011
"Giving troubled mortgage borrowers a second chance is storing up trouble for the banks. Efforts by banks to help out mortgage borrowers in trouble could be storing up serious problems for the financial system, according to credit rating agency Moody's."
mattdedasc comments: "And the elephant in the room is still widely ignored. Please do stop and think where the real problem lies. Then it'd may dawn on you that the asset price is far, far too high and unaffordable, even at today's historical low interest rates. The US will exit this crisis strong, since their house prices are collapsing and making ground for fresh investment, when they are affordable again. Not through a deliberate act of Government, I should say, but through a very democratic resistance to buy put on by the people. Perhaps the UK Government could notice how all plans to prop up the housing market in the US have failed and wasted taxpayers' money and let the bubble finally deflate. The young generation, with so much debt they can't even breathe, will thank you, boomers."
checkmate replied: "You are joking are you not?