US rescue plan for financial industry provides no quick fix for housing prices

The Saint ReportPlanning and Zoning, Politicians and Planning, saintblog0 Comments

foreclosure A campaign mantra that most voters can recite is the vicious cycle that has paralyzed the US financial industry — housing boom, credit boom, sub-prime loans, bad credit risks, foreclosures, falling house prices, credit meltdown.

A Wall Street Journal report finds that the Treasury Department’s $700 billion rescue plan does not address what the newspaper calls root cause of the crisis: falling house prices.

Reporters Ruth Simon and Michael Corkery say more action is needed to stimulate demand for homes and to reduce mortgage delinquencies and foreclosures.

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