Dustbowl
This Times story says more than 10% of US homeowners now owe more on mortgages than their homes can be sold for.
The story then notes various proposals being floated in D.C. to help. These must be mind-blowing for people raised on the Free Market PR that the globalizing corps have fed us since the 80s. It seems to be so for the beltway people themselves, all anxious to tell the reporter “This isn’t a bailout!”
Eg the banks calling for the fed gov’t to take hundreds of billions of loans and/or homes off their hands and then refinance them so the borrowers can stay in their homes. In essence resurrecting the Home Owner’s Loan Corporation that FDR’s new dealers created in the early 30s.
More broadly the credit market news this week shows things continue to get worse. No market cure in sight. Bring on the bailouts.
