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Will the US housing crisis cause a banking crisis!

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posted on Feb, 9 2007 @ 10:40 PM
It looks like the ramifications of liberal lending practices in the housing industry is starting to have an impact on some of the banks and mortgage companies! Yikes! Maybe the plunge protection team will help out!

HSBC Warning!

New Century Plunges!

Toll Brothers Write Downs Increase!

posted on Feb, 9 2007 @ 11:35 PM
Would this be affecting people who do not owe anything on their houses? Or does it only affect those with mortgages? Would the government randomly seize people's homes if the US dollar plummets?

posted on Feb, 10 2007 @ 06:47 AM
Just people who owe on their morrtgages mainly especially if they go into negative equity.

also people whove paid them off and who actually find their true worth is less than believed and falling every day


posted on Feb, 10 2007 @ 11:05 AM
Ive been looking at this for a bit now as it would impact my area quite alot.

The SF Bay Area has some really expensive real estate. The price of a 1150 sq. foot home in a suburb like Palo Alto would make you gag (think 1.2 to 1.5 million) and alot of people not being dot com $$$$$$$$$'aires bought into markets they could not afford using negative am. mortgages. If the market drops there may be huge defaults as they will not have the cash to cover the drop in value of the home.

Alot of the loans will come due in the next 2-4 years and it could get really bad if home values drop at all.

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