This isn’t going to be a quick fix.
“The real estate slump will persist as a glut of houses on the market depresses property values and lenders toughen mortgage requirements to stem credit losses. The Federal Reserve last week said the outlook had worsened and pledged to do whatever was needed to keep the economy growing. (full story)”
Throughout this financial crisis, there have been many industry “insiders” who have opted to take the route of eternal optimism. The declining value of the dollar, enormous deficits, increases in the cost of goods, declines in real income and a fundamental distrust in the American mortgage market are all contributing to a potentially difficult recession/depression for the economy. To make matters worse, every time home prices slide, there is a corresponding loss of wealth through equity.
