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Lest You Forget, The Housing Crisis Continues

Though some recent headlines would have you believe that the housing crisis is a thing of the past, 8 million Americans that are underwater on their mortgages and unable to refinance down from interest rates approaching double those currently available would probably beg to differ with you. And in spite of several years of efforts (and many millions in set-aside, as-of-yet-unspent government dollars), Congress and the White House have yet to provide any real relief for these beleaguered homeowners. But an interesting plan that would have the government step in to buy underwater loans to help underwrite refinancing is in the early stages of discussion. The plan is being crafted by a Senator who is a member of one our two major political parties; according to recent precedent, his colleagues on the other side of the aisle will reflexively oppose it and it'll join a pile of other plans in what must be an enormous Congressional trash can. But keeping this topic on the agenda is essential, because the ongoing nightmare for these 8 million people has effects that continue to ripple out and touch the entire U.S. housing market. [WSJ]