"Potential To Harm Families" Worries Writer
Danielle DiMartino writes for the Dallas Morning News and gets questions like these;
"•What's the connection between Fannie Mae and Freddie Mac and a housing bubble, if one does indeed exist?
•Assuming it does, when might this bubble pop?
•And finally, why are you so caught up in this issue?"
"Let's say for a moment that all of the credit that's being extended to purchase homes at inflated prices isn't of the highest quality. The proof here locally is that foreclosures have gone through the roof."
"Now extend that scenario to the really hot markets that have yet to suffer flat, not falling, just flat, home prices and you get to what keeps me up at night. Maybe even Alan Greenspan, too."
"How will federally established Fannie and Freddie and all the other mortgage debt holders react to the inevitable rise in delinquencies and foreclosures?"
"I worry about housing so much because of its potential to harm so many families. Stock market bubbles impact those who can afford to buy stocks. When that bubble burst in 2000, that included about 45 percent of Americans. But a record 70 percent of Americans now own a home. So housing bubbles have the ability to inflict much more pain on communities and our broader economy."