The New York Times doesn't get alarmed too easily. So when they warn that we might be in for another housing crisis, and they take to task the President they supported, it's worth paying attention.
"After a few months of some better than expected housing news, home prices are likely to fall again, driven lower by a renewed surge in foreclosures. By conservative estimates, another 2.4 million homes will be lost in 2010, while prices will fall another 10 percent or so. This should be a wake-up call for the Obama administration. Foreclosures are expected to surge, in part, because lenders have been delaying the process during the long rollout of the administration’s antiforeclosure plan. But according to Moody’s Economy.com, most troubled borrowers ultimately will not qualify for help, and a backlog of bad loans will soon enter foreclosure.
The Obama plan, which provides subsidies to lenders who modify troubled loans, has been flawed from the start. It has no teeth to compel lenders to participate. And it was primarily designed to help borrowers who defaulted because their loans had exploding interest rates or other features that made them suddenly unaffordable."
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