The housing market will seriously DIE if this hapens.

[KillCapitalism]

Link here:

http://news.yahoo.com/s/time/20081017/us_time/thebankbailoutssideeffectrisingmortgagecosts

I was told by someone in the mortgage industry to get ready for 16% interest rates in the near future on mortgages like we had in 1981.

[Turbineguy]

1. Well that does make sense

if people are willing to settle for half the profits from leveraged mortgages.

[Rupert Giles]

2. rental apartments

The housing situation is terrible, the US really needs to build a lot (millions) of rental apartments for the workingclass and the middleclass. In Europe it is very common and rental housing serves as an important automatic stabilisator during crisises like this.

[InkAddict]

3. Swell, the interest rate will match the "official" unemployment rate

which will be lots higher...real estate taxes will shoot even higher...large community landlords pushing $30-$50 month yearly increases now...with higher app and security deposits and hardly less expensive than a mortage, even if one lets the DIY maintenance slide, when the RE taxes hit the roof to keep those privatized gov'mint services humming for the ritzy neighborhoods.

[Eurobabe]

6. Yeah it's great over here, the rich are the only ones

who can afford to buy houses. Only 43% of people can afford to own their own place.

[Dover]

4. As horrible as all this is, I think it will lead to some very creative new living arrangements

and situations that will ultimately be very healthy. We really don't want to go back to the way
it was do we?

[barb162]

5. I wonder; It didn't die in 81.

[EmeraldCityGrl]

7. Every little hole in the wall was turned into a condo

over the last few years. Many of these units were at one time affordable
apartments. People that would have preferred to rent where put into a
position of having to buy in order to have a roof over their heads.

A family with small children looking for a two or three bedroom
home to rent can expect to pay $2400 a month or more. Buying
with zero percent down was the only option for many.

Go to your local Craigslist and scan the ads under "Housing Wanted."
It's enough to break your heart. Family after family, many multi-generational
are finding themselves on the street without options.