Survey Says Bailout Will Fail
Mike Colpitts
October 21, 2008
A huge majority say the Congressional bailout of the financial markets will fail to stabilize the U.S. housing market, according to a new survey conducted by Housing Predictor dot com.
Some 3 out of 4 respondents to the online survey conducted after Congress approved the $700-billion bailout package, which has grown to more than $2-trillion since receiving approval by lawmakers, believe the efforts by Congress and the White House will fail to stabilize housing markets.
Run away fraud on Wall Street, new securities developed to sell a record number of mortgages tied with loan fraud by hundreds of thousands of lenders and mortgage borrowers all produced the frenzied real estate boom, igniting a national marketplace with falling home values.
Housing deflation and a society that has borrowed beyond its´ means has led to an epidemic of foreclosures that have topped 3 million properties nationwide. Another 3.4 million are forecast to be foreclosed by Housing Predictor through 2011 unless Congress and government leaders tackle the problem and halt the growing number of foreclosures, which threaten to produce devastating affects to the overall national economy.
A bipartisan effort by Congress passed the bailout plan, and now Housing Predictor has called on members of both the House of Representatives and the Senate to pass an emergency law to freeze foreclosures for a period of six months. The moratorium would give lenders, Congress and homeowners enough time to produce equitable arrangements on home mortgage payments and greatly limit the excessive number of foreclosures that are taking place.
Many mortgage holders with adjustable rate mortgages are unable to refinance their properties due to falling home values and as a result are faced with foreclosure. An estimated 81% of all homeowners nationally who purchased properties as far back as 2002 owe more on the property than what it is worth in today´s marketplace.
Housing Predictor forecasts more than 250 local housing markets in all 50 U.S. states and provides real estate news and analysis. Visit http://www.housingpredictor.com
Some 3 out of 4 respondents to the online survey conducted after Congress approved the $700-billion bailout package, which has grown to more than $2-trillion since receiving approval by lawmakers, believe the efforts by Congress and the White House will fail to stabilize housing markets.
Run away fraud on Wall Street, new securities developed to sell a record number of mortgages tied with loan fraud by hundreds of thousands of lenders and mortgage borrowers all produced the frenzied real estate boom, igniting a national marketplace with falling home values.
Housing deflation and a society that has borrowed beyond its´ means has led to an epidemic of foreclosures that have topped 3 million properties nationwide. Another 3.4 million are forecast to be foreclosed by Housing Predictor through 2011 unless Congress and government leaders tackle the problem and halt the growing number of foreclosures, which threaten to produce devastating affects to the overall national economy.
A bipartisan effort by Congress passed the bailout plan, and now Housing Predictor has called on members of both the House of Representatives and the Senate to pass an emergency law to freeze foreclosures for a period of six months. The moratorium would give lenders, Congress and homeowners enough time to produce equitable arrangements on home mortgage payments and greatly limit the excessive number of foreclosures that are taking place.
Many mortgage holders with adjustable rate mortgages are unable to refinance their properties due to falling home values and as a result are faced with foreclosure. An estimated 81% of all homeowners nationally who purchased properties as far back as 2002 owe more on the property than what it is worth in today´s marketplace.
Housing Predictor forecasts more than 250 local housing markets in all 50 U.S. states and provides real estate news and analysis. Visit http://www.housingpredictor.com
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