by Bill McBride on 3/07/2008 03:55:00 PM
Friday, March 07, 2008
Mr. Summers ... said federal housing and mortgage policy is "behind the curve." He said the focus on adjustable rate mortgages which are resetting is misplaced; lower interest rates ameliorate that. He estimated 30% of homes with mortgages -- about 15 million in all -- are likely to be worth less than their mortgages. He argued foreclosures are enormously costly and destroy value and thus should be prevented as much as possible.I'll post a video when it is available.
He also said estimates that the housing and mortgage bust will reach $400 billion are likely to be "substantially optimistic".
Posted by Bill McBride on 3/07/2008 03:55:00 PM