According to Reuters:
Authorities in Philadelphia will suspend foreclosure sales of homes whose owners have fallen behind on adjustable-rate subprime loan payments — potential relief for tens of thousands of struggling debtors.
Sheriff John Green said on Friday he would halt sales of foreclosed properties in April and would seek a court order extending a moratorium for an unspecified period.
This is so riddled with moral hazard, it may be a sign of how dreadful things are becoming in the US housing market.
After posting this yesterday, I today discovered:
Twenty eight million Americans on food stamps? Even taking into account recent publicity about the programme, this record is worrying.
According to economist Robert Parks, there is a 60% chance of depression in the USA.
What prompted Parks’s pessimism is his assumption that the “right-wing ideology” prevalent in the White House will keep Washington from acting to ward off a major depression. A fan of famed British economist John Maynard Keynes, who called for major government spending programs to remedy the Great Depression of the 1930s, Parks would like the federal government to step up outlays to fix rickety bridges, repair pot-holed roads, improve schools, and more to provide more jobs, more income, and thus more spending to cure any economic downturn.
All very well, but governments are short of cash too…