Tag Archives: underwater mortgages

“It’s Going to Be Awhile”

photo credit: Joe Mabel

Yesterday’s New York Times discussed some of the connections between local housing markets and economic health.  It’s a relatively short, but illustrative example of DC suburbs who soared during the housing boom and now struggle with anemic consumer spending.

One major issue centers around the connection between average consumer spending and home mortgages.   Continue reading

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The moral hazard of not helping underwater mortgages

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With his State of the Union address last night, President Obama introduced new proposals to help struggling homeowners.  This is hardly the first effort by the Obama administration, though many of the others have been short-term fixes that did not suffer enormous opposition.  This probably will be different. Continue reading

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