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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Lazarus who wrote (189875)	3/10/2009 4:10:25 PM
From: geode00	Respond to of 306849

The banks are probably adjusting to having to take on risk again since they are likely having problems selling off the loans they do take on. There is also a significant risk of more unemployment and, therefore, lower house prices overall. What do banks do when they refuse to make loans? Sit around and watch all of their existing eggs very carefully? I guess they could try and invest deposits somewhere but they should talk to all of the guaranteed annuity insurance companies first. If the Chinese economy recovers quickly they can stop buying treasuries and simply by cheap houses in the US for cash.