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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (4647)	3/6/2008 10:32:03 AM
From: stan_hughes	Read Replies (2) \| Respond to of 71441

But it isn't the interest rate resets that are killing the market, it's the high LTV mortgages that are now underwater -- even people with good credit are walking away now because it makes no sense to keep paying. They likely never had anything invested in their house anyway, and even if they did, it's long gone, so there's not much point in throwing more good money after bad no matter how great a reset interest rate they're offered Since a bank can't seize anything under a mortgage contract other than the house itself, the banks have limited options for recovery, and the homeowners know it. So until the homeowners and the banks stop playing chicken with each other about who's going to take the loss on the impaired value, this mess isn't going away anytime soon The other trouble being, eventually the government is probably going to make it go away and lay it off on everybody in the land, and that'll just create a different kind of mess -- in fact, judging by the dollar and the price of anything except equities, that new mess has already started