Wednesday, May 02, 2012
Government at Work - on the Housing Market
So, how's that government thing working out?
Apparently, and as usual, not so well...
Apparently, and as usual, not so well...
This story at Reuters.com tells us just that:
"These loans, insured by the FHA, require a down payment of as little as 3.5 percent of the purchase price, providing only a small cushion of protection against a drop in home prices that could drive a borrower into negative equity.'This is creating a new wave of underwater borrowers,' said Gary Shilling, a veteran financial analyst and well-known housing market bear. 'We have all three branches of government trying to keep people in four bedroom houses who can't afford chicken coops.'"
