CAPE CORAL, Florida (Reuters) - Long before she filed for bankruptcy, Ann Neukomm was "under water" -- she owed more on her mortgage than her house was worth -- a situation more and more Americans are finding themselves in.
As the financial crisis hits Main Street America, nearly one in six U.S. homeowners are finding themselves in the same position, threatening the U.S. economy with a new wave of foreclosures and bankruptcies.
This shows that this whole crisis has so much further to go. The correlated nature of housing and credit card defaults is going to lead to far more pain than the $700billion bailout could ever undo. The US Government needs well over $5 Trillion dollars to deal with this. The money has vanished back into inanimate objects and under mattresses since people now fear losing their nest eggs. Housing is not a one way bet - in either direction.