Report Offers hope on Foreclosures
The effect of rising foreclosure on the economy could “break the backbone of our economy” said Douglas Palmer mayor of Trenton and president of the U.S. Conference of Mayors. The Mayors group meeting in Detroit hope to create policy recommendations to help address the housing crisis. The report, released yesterday, estimates U. S. Gross Domestic Product growth in 2008 will be 1.9 percent — one percentage point lower. The GDP is the value of goods and services produced and is considered the best barometer of the country’s economic fitness. The report, created by Global Insights, further suggests that homeowners, banks, holders of mortgage backed securities, and loan servicers work together tot ease the economic effects.