The mortgage crisis has developed into the worst real estate crisis since the Great Depression, according to the latest report from Housing Predictor. Hundreds of thousands of conventional mortgage borrowers are being foreclosed.
The crisis not only has the ability to cause a recession, according to the new Housing Predictor report, but analysts only question it’s severity and how much of an impact it will have on the overall U.S. economy.
The autor is right, the crisis will have a huge impact on the US economy, because people, who are affected by foreclosures will lower their spendings and it will or better it is actually hurting the economy. I have read many articles about the current situation and experts are not very optimistic and predict that the number of foreclosure auctions will be rising in 2008. Thousands of people were already forced out of their homes repossessed by banks. I guess all of this goes right along with the adage, the rich get richer and the poor get poorer, because the millionaires are not so affected by the crisis, if the didn't invest in buying subprime loans from mortgage houses.