1. The depth of subprime crisis is not known in US and it was an amazing effort on part of Mr George Bush to salvage the economy by the mortgage rate fixation for a full five years.
2. US economy going into recession spells doom for other economies as the demand for their products dip in US and thus in turn their economies also fall in recession. So it is in interest of all that this sub prime crisis is dealt properly.
3. An interesting article from the web throws some light on the efforts by President George Bush.
1. Keeping in view of impending elections in US and mounting subprime crisis US President has ordered freezing of mortgagee rates for full five years.
2. President was under tremendous pressure to raise the freeze years to seven yaers whereas President Bush chose to undertake freeze of mortgage rates for five years considering vibrancy in the economy.
3. Original home owners are likely to be benefited and speculators may bear the brunt of subprime crisis.
1. It is estimated that another 1.4 million US houses will be forced into foreclosure and property values will be driven lower by 7% in year 2008.
2. Even cities will have to bear the brunt due to shortfall in receipt of revenues. Markets of California and Florida will be most affected.
3. Even crime rate will increase because of the foreclosures. Foreclosures can break the economy of the USA if not addressed properly.
