(Source: FOx News By Chris Stirewalt) – At the center of the Panic of 2008 were defaults on cheap mortgages for Americans with poor credit. The latest idea to reverse the resulting recession is for the government to offer cheap mortgages to Americans with poor credit.There have been rumblings for weeks that the economic plan to be offered by President Obama after he returns from his vacation would be aimed, at least in part, at trying to re-inflate the American housing market.
Nearly non-existent interest rates, tax-rebates and free money for banks that refinanced underwater borrowers have not worked to reverse perhaps the steepest slide in home values ever. Even when there was hope for recovery, home values kept descending.
Source: FOx News By Chris Stirewalt
Published August 25, 2011
To read more, click on this link