According to a BBC article, as many as 2 million Americans may lose their homes in the next two years due to the crisis in the sub-prime lending markets. Many of these individuals are low income folks who were suckered by unscrupulous motgage lenders.
It seems like there is much talk in the mainstream media about the effects this crisis will have on the investor class, but little about how it will affect ordinary Americans--especially those who may soon find themselves homeless as the interest rates on their mortgages skyrocket, leaving them unable to afford the payments.
Often, these lenders would lie to borrowers about the fact that their interest rates would increase at some point, leaving them unable to afford the payments. Shouldn't these guys face at least some sort of punishment for using such deceptive practices? In today's pro-corporate eonomic climate, thye will probably get off scot free.
Although George Bush has proposed that lenders and borrowers should renegotiate the terms of these loans, many experts feel this approach will not work, due to the unwillingness of many lenders to take measures to prevent foreclosures.
Very soon, prices for consumer goods and energy will probably begin to rise as the dollar falls against other currencies, making life much more difficult for many already cash strapped Americans.
Too late, Americans have begun to see through the lies foisted upon them by the Republican party, and their pro-rich economic policies. We may be in for a very, very rough ride.
Comments