U.S. Housing Aid Winds Down, and Cities Worry

[phantom power]

ELKHART, Ind. — Over the next six months, the federal government plans to wind down many of its emergency programs for housing. Then it will become clear if the market can function on its own.

People here are pretty sure the answer will be no.

President Obama has traveled twice to this beleaguered manufacturing city to spotlight the government’s economic stimulus program. The employment picture here has indeed begun to improve over the last nine months.

But Elkhart also symbolizes the failure of federal efforts to turn around the housing slump at the heart of the economic crisis. Housing in this community has become almost entirely dependent on a string of federal support programs, which are nonetheless failing to prevent a fall in prices and a rise in mortgage delinquencies.

http://www.nytimes.com/2010/02/15/business/15housing.html?hp

[FreakinDJ]

1. It did not work that well any way

Even as the Government offered Tax incentives - it was the Bank's refusal to make loans, and gluttonous greed fueling bankruptcies that stifled the housing Market