The money will also be used to help those homeowners who cannot currently make their payments. After the homeowner's loan is modified and their payment has
been decreased, if they are still unable to make their payments, it is said that the Fed will cover the remaining amount. Some experts are saying that this would lead
to price control, which would inevitably lead to resources being misallocated and, in turn, shrink the economy.
However, we may be closer than we think to a recovery, especially here in San Diego. The housing market in San Diego has already been declared one of the
cities that has turned the corner. The San Diego market was one of the first to be hit with the crisis. Other markets said to have turned the corner are
Phoenix and Las Vegas. It was also reported yesterday that Washington DC's economy was actually growing during these times.
On the other side of the coin, some experts believe that Obama's housing rescue plan may be just what we need and its timing could not be more
perfect.
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