Housing Predictor Urges Emergency Fed Action

In an unprecedented move, Housing Predictor, which forecasts housing markets throughout the U.S. issues an editorial urging the Federal Reserve to take major action to resolve the nation's economic crisis.

Destin, FL (PRWEB) March 17, 2008 -- In an unprecedented move, Housing Predictor issues an editorial urging the U.S. Federal Reserve to take major action to resolve the nation's economic crisis.

The Federal Reserve has taken a series of steps to improve the U.S. economy. But in its slow academic response the national economy has slipped into a recession, and it may be teetering on the edge of a depression, according to Housing Predictor analysts.

The Fed's slow response to the nation's real estate recession has sent home prices in the over-whelming majority of housing markets falling, some at unprecedented double digit levels. Since the economic crisis started more than 2.4 million homes and other properties have been foreclosed.

The White House and the Fed are finally in Emergency Crisis management mode in an attempt to solve the problem. The bailout of one of the nation's oldest and once most trusted investment banks, Bear Stearns is another sign that the Fed is out of touch with what has really been going on in the national economy.

The $200-billion dollar infusion into the money markets is an attempt by the Fed to save major banks and mortgage companies from failing. At this point, even the most naive realize that in many cases the criminals were in charge of the lending process for way too long and that unregulated mortgages were made to far too many mortgage borrowers during an era of deregulation that blew up the financial system.

The crisis has monumental implications for the national economy, and the rest of the world's financial markets, which have been thrown out of whack since the economic crisis blew up more than a year ago. As more and more home owners have fallen behind in their payments to become delinquent resulting in more foreclosures, the crisis has worsened.

Investments banks and other lenders have no way to determine the extent of the crisis since their risk-management models do not take unprecedented events like the nation is currently experiencing into account. As a consequence, the banks have not only been caught off guard, but have been amazed at the speed at which the crisis is accelerating.

To learn more about the nation's real estate crisis, check your local market forecast and search foreclosures visit http://www.housingpredictor.com.

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