The crisis related to the mortgage industry or more importantly related to so many home owners is going to impact politics more than we might think.
We have yet to see the real impacts of a serious tightening in credit and a significant down-turn in housing prices. Until now, many sellers and home builders have held somewhat steady on price, preferring to hold on for a better deal rather than sell at a significant discount. That is changing. And as the months go by and what seems like a whole generation of first-time home buyers realizes that they have lost 10%, 20% of their home values, they are going to get angry.
People usually look for someone to blame when they get angry. President Bush is a likely target, the Congress is another. ‘Someone should have done something.’ ‘Someone should have saved the family of four who bought a house with zero down with a mortgage that offered zero interest for 3 years and then adjusted upwards swiftly, from themselves.’ …they will say.
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