Is the Housing Decline Really Over in the U.S. and Elsewhere?

Have a look at Barrie McKenna’s article regarding the TARP Watchdog. With continuing high unemployment and more mortgage resets this year, it isn’t likely that the American house price decline is over. It’s momentarily stabilized.  Compounding the situation is the ever present risk-taking culture of Wall Street. Traders, lending officers and management are hired to take on risk. Without it, they could not afford ...
to pay out the big bonuses they normally pay out. Often the traders win and all is well. But with the U.S. government standing in the wings to bail out the “big guys”, who is assuming the risk?

Another financial crisis may be brewing. This time it won’t be based on mortgage backed securities but something else. Will the U.S. government have the willingness and ability to bail out those too large to fail, again?

What will another banking shock do to house prices?