Apropos of the dawning realization that the current credit woes go way beyond Bond and other Insurance Companies and subprime mortgages, it is reported that the average first mortgage debt now exceeds the average price of a home.
It is also reported that there was one other time in the recent history of the United States that such a large part of its population owed more on their homes than their homes are worth.
That was in the Great Depression. Edmund L. Andrews & Louis Uchitelle, "Rescues Weighed as Homeowners Wallow in Debt/Efforts in Washington/Mortgage Exceeds Value of Home for 10.3% of Nation's Owners" p. A1, col. 6 (New York Times Nat'l Ed., Friday, February 22, 2008).
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