There isn’t enough money in the world to stabalize this housing market. You can lower these peoples rates to ZERO percent and they STILL couldn’t pay these mortgages. They are going to have to be foreclosed upon, and the banks whose balance sheets are wrecked are going to have to go under. Until the players all face the pain from their decisions the markets won’t recover, because no one knows who to trust. The banks don’t trust consumers or eachother and vice versa because everyone knows the bad actors are still in play. Once they have been eliminated and only people/businesses with good balance sheets are left, people will start to do business with one another again.
It’s the lack of confidence that is killing the economy and that isn’t going to go away.
“There isn’t enough money in the world to stabalize this housing market. You can lower these peoples rates to ZERO percent and they STILL couldn’t pay these mortgages. They are going to have to be foreclosed upon, and the banks whose balance sheets are wrecked are going to have to go under. Until the players all face the pain from their decisions the markets won’t recover, because no one knows who to trust. The banks don’t trust consumers or eachother and vice versa because everyone knows the bad actors are still in play. Once they have been eliminated and only people/businesses with good balance sheets are left, people will start to do business with one another again.
It’s the lack of confidence that is killing the economy and that isn’t going to go away.”
That is the exact argument that needs to be passed to the upper echelons of the Republican party asap. If that can’t be done and it cannot get out on a national scale, then this housing subsidy battle will be lost.
Or to put it more simply. What happens when you make the adjustments and 6 months later they still can’t pay? Because that’s precisely what’s going to happen.