have really flattened out in the last year. and while it is true that most economists expect a small dip from here largely as a consequence of the ending of the tax credit, the data doesn t show that at this particular stage. in home prices stay stable, then i think we will skirt the worst of the housing problem. but right under this current price level, maybe 5% to 8% below is a very large block of mortgages which are under water so to speak or could be under water. and that would induce a major increase in foreclosures. foreclosures would feed on the weakness in prices and it would create a problem so that it is touch and go. governor rendell, one of the things that secretary geithner said on this programñi last wee is that we reached a point as he said where we need to make a transition to a recovery led by private investment. led by the private sector. government has to take its foot
last year. and while it is true that most economists expect a small dip from here largely as a consequence of the ending of the tax credit, the data doesn t show that at this particular stage. in home prices stay stable, then i think we will skirt the worst of the housing problem. but right under this current price level, maybe 5% to 8% below is a very large block of mortgages which are under water so to speak or could be under water. and that would induce a major increase in foreclosures. foreclosures would feed on the weakness in prices and it would create a problem so that it is touch and go. governor rendell, one of the things that secretary geithner said on this programñi last wee is that we reached a point as he said where we need to make a transition to a recovery led by private investment. led by the private sector. government has to take its foot