Will Subprime Foreclosures Spur $70B in Losses?
Two million households with adjustable rate subprime mortgages could end up in foreclosure by the end of 2009 and lose $71 billion of their housing wealth.
According to a Joint Economic Committee report that breaks down the impact of foreclosures on each state, “The Bush administration needs to take off its ideological handcuffs and act quickly to save financially strapped families from drowning in a tidal wave of subprime foreclosures,” JEC Chairman Charles E. Schumer, D-N.Y., said in releasing the report.
It appears that Charles Schumer does not read the opinion polls. The vast majority of Americans do not favor a government bailout. Most families feel that they should not pay for the mistakes of people that probably should not have ever had a mortgage in the first place.
FACT: From Jan/2007 to June/2007 Bear Stearns paid out over $17 Billion in Bonuses and yet they have 2 bankrupt hedge funds. What should you favor? Is it not time we stand up for what is right?
The Wall Street hedge funds got rich from all the subprime mortgages and all the banks underwrote the mortgages so why make Americans foot the bill? Make those that profited pay!
The report estimates foreclosure losses by state, including projections that neighboring homeowners will see the value of their homes decline by $32 billion.
The congressional report covers subprime foreclosures from the beginning of 2007 to the end of 2009 and assumes that house prices will decline sharply. The Bush administration estimates that foreclosures will not exceed 500,000, Sen. Schumer said, adding, “That is much too low.”
Tags: Adjustable Rate Mortgage, Depreciation, George Bush, Hedge Funds, Mortgage Bubble, Mortgage Defaults, Mortgage Delinquencies, Mortgage Implosion, Mortgage News, Stop Foreclosure, Subprime Bailout, Subprime Implosion, Subprime Mortgage Industry, Wall Street
