Economy Shudders, Cracks Appear
I have a bad feeling about this. Home values continue to drop, which in and of itself is not a bad thing. The fact that loan programs are operating in ignorance of this predictable fact, and that government policies are struggling against it are truly disturbing.
Some quotes from a Reuters article (hat tip Paul Yoh)
“The overwhelming majority of the U.S. is still seeing home prices decline,” said CoreLogic senior economist Sam Khater. “Many borrowers continue to be quickly wiped out.” — Reuters
This “wipe out” is only meaningful if you are using the home primarily as an investment vehicle rather than as a place to put your family and all your stuff. After all, a home which loses ALL of it’s value, sale price … Continue reading
