As the news on the housing crisis gets worse every day, spurred on by defaulting flexible mortgages, many are left wondering just how bad things are going to get. From what the experts are saying, the worst is not yet over and the bad news could continue for at least two more years.
Former Fed Chairman Alan Greenspan stated that the current financial problems are “the most wrenching since the end of the second World War.”
“A very severe correction is under way,” said Mark Zandi, chief economist at Moody’s Economy.com. “House prices are plunging, stock prices are down measurably from their peak, there’s a lot of financial pain everywhere. I think all the policymakers are trying to do is ensure that everything doesn’t come to a complete halt.”
Investors are getting very shaky on flexible mortgages and as the dollar continues to slide and oil prices go up, things could get very tight in the US. The falling housing market is not helping those who have flexible mortgages right now, as their property values sink, creating a problem of owing more than the home is actually worth. In this case, few have any other option than to default on their flexible mortgage.
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