Several top economists and finance industry experts now expect the subprime crisis to mutate rapidly  into the biggest fail to hit the sector since the savings and loan debacle of the 1980s, which led to upwards of $500 billion in losses to the banking industry. A lot of this is going to heavily depend on how low the average home prices continue to decline over the next few quarters.  High unemployment rates are contributing factors, as well as the overall number of homeowners forced into foreclosure from rate hikes.  Already, things aren’t looking good.

The United States is in a sad state of affairs.  People cannot afford to buy homes, and cannot afford to keep the ones they have.  So many mortgages are being foreclosed on, with homes going back to the banks and sitting there, not selling even out of foreclosure.  New home sales are at a record low.  The country seems poised for catastrophic collapse, with jobless rates higher than they have ever been.

One thing is agreed upon by analysts:  short term fixes like rate freezes and stimulus funds are not the answer.  If the Obama administration intends to start that back up again, Americans will be the losers.  The stimulus funds he already released early in his presidency remain unaccounted for.  No one knows where any of the money really went.  Perhaps it is time for him to go.  Learn more on Direct Satellite TV.