Reply #38: The economy was tanked with the inflated lending and interest gauging

[superconnected]

this is a market correction.

If anything it will help the economy.

Money won't be going to those big financial instutions but back into the pockets of the people.

Who lose here are the people who hold on to the couple grand a month mortgage, hoping values will go up and ignorning that people buying in for half of what they did will see the same value increase over time - but paid a lot less for the same value. And of course they won't see the value rise as fast and rash as it looked before the crash.

It's like the stock market. Those who held on to the stock in hopes that the over inflated value would come back, lost. I watched them deny it as the stocks were crashing around them. With a house it's super dangerous to do that because what if something happens where they can no longer make their mortgage payment. They lose where they live. But then, is it so bad that they may lose their house and be forced to come back in at half the payment for the same house. Oooow poor home owner. The smart ones will drop the house because of the cost of the loan, like the very few smart people in stocks did. Most home owners won't do that though. They'll ride it out and eventually dump the bad loan in a bankruptcy court. At least they'll get back in for a lot less cost to themselves than what they originally bought for. They'll be in a far better postion. But first they'll have to swallow the reality pill that it was a bad loan.