While it is is true that this correction was long overdue, and most people will no longer be able to fund their spending habits using mortgages, the prime area of concern now is the blowback for the financial markets and big banks. Every quarter with more write offs drags the markets down even further, and analysts can no longer be certain that more rate cuts will be able to stem the tide. 2008 is expected to be a very rough year.

T Franklin
Money-Rx

Actually, mortgages became the popular topic for discussions as a lot of people have particular troubles with them. The interest rates are rather high and a lot of people have just lost the ability of repaying their home loans due to the hard financial times we live in. Besides, some of consumers tried to participate in the programs of mortgage loan modification and were cheated by the Bank of America. In fact, the situation is rather complicated and it's difficult to foresee what can happen in some time. People are even afraid of taking short term personal loans, or so-called cash advance, as they are not sure that they will be able to repay them with no damage to their budget.