Housing Crash the New S&L Crisis

When you build a house the key to the solidity of its construction is a well built basement. When you buy a house the key to its market stability is your mortgage. When you are poor and buy a house using a sub-prime mortgage you are buying on a weak foundation as the market is discovering in the U.S. this week. As housing prices fall and interest rates increase those who bought over-valued homes in the U.S. on a variable mortgage will find themselves paying more for a home of less value.