I would say that most people who can afford to pay their housing cost
will pay, but there is always a group of bogus borrowers who will take
advantage of easy credit to either live free .  No money down and no
equity in the house - walking away is easy.

Not really sure what your point is about Keynes.  Maybe you could explain.

On Thu, Sep 25, 2008 at 2:24 PM, Dana <[EMAIL PROTECTED]> wrote:
> bottom line though, they cannot afford the payments? If people can
> afford to pay their housing costs usually they will, yes? If you agree
> with that statement, then ask yourself what Keynes would say.
>
> On Thu, Sep 25, 2008 at 1:33 PM, Maureen <[EMAIL PROTECTED]> wrote:
>> The problem in the mortgage industry is that people applied for loans
>> with an adjustable rate interest that had low initial rates, but now
>> the higher rate and higher payments are kicking in and they can't
>> afford the payments.  Credit has tightened and they cannot no longer
>> qualify for refinancing.  Add high gas and food prices to that and you
>> have a recipe for disaster.

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