By 2011, 48% of Mortgages Will Be Underwater

If taxes were higher in the past and foreclosure rates were lower then perhaps its tax cuts are the cause. No more likely tax rates aren't related. Now if wages were to rise then more people will be actually be able to afford their current mortgage or to buy a new home.

Yo Bagel for Brains, your remark "big government and high taxes are the biggest factors" is total b/s, the tax rate is actually lower than it has been for some time especially on the upper "class". Reason for the housing market problems? You should have actually READ THE ARTICLE and not stopped with this short condensed version....The Housing Market crashed (news flash for you) thus driving the cost of the average home down, homes lost value in the crash, not a small amount of value but a vast amount of value.....Thus the home they purchased for $350,000.00 on todays market is only valued at 165 thousand, less than half what they paid and less than the worth when they attempt to obtain a new mortgage for the home. Banks will not lend them the cash to cover what it use to be worth they will only lend on it's actual appraised value today thus the drop in value will cause the crisis ......NOW we get to the actual cause of the housing crisis? The market crashed when banks offered sub prime loans due to the banks and lending institutions playing Russian Roulette and gambling on high profits over the Bush years in the white house, it was an unchecked disease that swept the nation. The variable interest loans have been around a very long time and many people bought in to it thinking they could refinance a few years later and save all the interest money...WRONG.....now they loose it all, plain and simple. The American bubble has burst in part due to profiteering and guess who was driving the boat when it sank...end of story. BYE!!!

UrUnderfaker: I was addressing HOW to get out of our economic slump, rather than the housing crash that has been a factor in it's creation. We will not regain prosperity until we restore manufacturing jobs to undereducated workers and become a nation that produces. The housing market will remain weak until people are gainfully employed. Now, to address your rant: The housing market crashed due to consumerism and unchecked profiteering on the part of the banking, real estate and lending industries. A good deal of that blame belongs to homeowners who refi'd again and again so that they could live beyond their means. The bill always comes due (maybe you should consider that when endorsing socialism). The housing balloon which went up for MANY years (under CLINTON too, incidentally) finally burst, and now we have to rebuild. Try as you may, you can't blame "the Bush years" entirely for this mess. Are you really so thick as to think that greed and corruption exist only under republicans? Your bias is blinding you to the truth.

@Jayster999: You were ADDRESSING "Liberals will try to pin this on Bush, but big government and high taxes are the biggest factors." Hence it was your opening statement, then your follow up was about how to get out. That being said your are so very right on most of what you said. Can't kick out the illegals cause big food need them for harvesting and production. Unless you want to go out and pick strawberries.