OBAMA’S FISCAL DEATH DANCE
It is estimated that up to a quarter of all American households still owe more on their mortgages than their homes are worth. Many of these people have been able to refinance their home loans with much lower interest rates, but that does not solve the problem because they have a balance sheet problem rather than a cash-flow problem.
Those who owe more on their homes than they can sell them for, and who have little other savings or assets, are "locked in" to their existing homes.
Even if they have a better job offer in a location too distant to commute, they may not be able to take the job because they cannot afford the mortgage payments on their existing homes, cannot sell for a price higher than their mortgage, or cannot afford rent or house payments in the new location.
The Obama administration and the Federal Reserve are largely responsible for the problem. Ironically, they too are locked in to an inescapble conundrum of their own making.

