I read an interesting article today about the housing market and consumer confidence here. The article writes,
Posted by Colleen Lane on
The missing ingredient today in the housing market, the economy and the financial system is trust.
- Banks won’t lend to each other because each thinks the other is going under.
- Bank won’t lend to consumers because they don’t think they can pay the loan back.
- Consumers don’t trust the government because just 6 months ago they pronounced that the economy has strong fundamentals.
- Buyers don’t trust the local housing market because they think it is going to collapse.
- No one trusts anyone.