[NYTr] Booming Economy: 2 Million in US Could Lose Homes

[All the News That Doesn't Fit]

Prensa Latina, Havana
http://www.plenglish.com

US Housing Sector in Crisis

Havana, Sep 5 (Prensa Latina) About two million US citizens could lose
their homes because they can't afford to pay the rising mortgage rates
or their credit card debts.

Many people want to sell their homes rather than have them foreclosed
for non-payment, but housing prices have crashed with the descending
Wall Street spiral, making this impossible.

An article, by Orlando Oramas in Wednesday's Granma daily, pointed out
that the mortgage crisis has spread to the financial sector too, as
they are part of the same system.

When debtors stop paying their monthly installments, even with fines
and foreclosures for late or non-payment, banks and credit entities
suffer the effects and reduce staff or declare bankruptcy.

It is significant that many US citizens live in debt for their homes,
cars and equipment purchased because of advertising encouragement to
consumption, so the non-payment chain affects the entire economy.

Frightened banks and investors reduced and abolished loans and began to
sell risky assets, taking protectionist measures that caused the main
stock market to fall abruptly worldwide.

This forced emergency interference from the US Federal Reserve and
European and Japanese central banks, as well as the demand for billions
of dollars to keep the situation in check.

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