Housing Market Could Collapse in Default Crisis
'If the U.S. defaults on its debts it is nearly certain that the housing market recovery will get a TKO.'
The financial market is gathered around the virtual ring watching as the housing market braces for another blow after rallying back onto its knees from the last knock-back. If the U.S. defaults on its debts it is nearly certain that the housing market recovery will get a TKO. Largely the housing market relies on investor and consumer confidence, if the US should lose the AAA debt rating, the financial fallout will be far reaching. At a minimum consumer interest rates will climb, but some experts feel that the value of mortgage- backed securities that are guaranteed by the federal government will plummet and lending will grind to a halt until it is clear which government obligations will be met and which will be set aside. In a statement …
