Health

Mortgage crisis in U.S. continues
by Ivana Bruderova

The U.S. financial analytics and economist are still dealing with problem which is a reason of sleepless nights for many Americans. They all agree with the fact the answer will not be easy and there is no simple solution. The country was facing an wave of 1.8 million subprime mortgages which rates will still rise over the next two years. The Bush administration now deals with freezing subprime mortgage rates for the next 5 years to allow the housing market to recover. In Monday said it Treasury secretary Henry Paulson. In his speech and after it during question-and-answer session he made clear many of actual questions. "After years of unsustainable price appreciation and lax lending practices a housing correction is inevitable and necessary," he said. "It will take additional time for markets to regain confidence," continued Paulson. Conservative critics have complained about fact, this plan means intrusion the government to the mortgage market. President Bush has not make a decision yet but the administration is much focused on the issue, said Paulson. The mortgage crisis is not a thing of last few months. During the housing boom in U.S. lasting for five years until the 2005, many Americans bought houses with subprime mortgages with an adjustable rate and then about one year later they were not able to pay because the rates were rising enormously. Now is not rare you can see streets with more houses that have been foreclosed than those with residents. For those whose houses were already foreclosed is there no help, unfortunately. There are still many people worried about their houses and waiting for final decision of administration. Moreover, Friday report revealed that unemployment have reach two year high of five percent in December. Administration is continuing work with more than 20 mortgage institutions that are part of the HOPE NOW alliance to ensure quick results.

by Ivana Bruderova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

posted by Blog TechSource @ 2:46 PM