What will happen to our economy if the mortgage industry crashes?

Would we be looking at another great depression?What will happen to our economy if the mortgage industry crashes?
Yes, it would be very bad if it happened. However, it appears as if the necessary liquidity has already been restored to avoid this.





Lenders very badly want to make loans right now - provided your loan can meet a few elementary guidelines. The days of loan approval as soon as the mirror gets a little cloudy are gone.





I talk about this in depth here





http://www.danmelson.com/2007/10/full-ci鈥?/a>What will happen to our economy if the mortgage industry crashes?
will it ? even though in the 80s interest rates soared up to 18 /19 % people still bought and sold, mainly because we all have to live in houses even if we rent or buy we all need some where to live
Banks and credit companies will act more responsibly and start checking who they lend to. And banks will ditch crappy mortgages such as Adjustable Rate Mortgages (ARMS), and Interest Only loans. Borrowers will think twice before they buy something they can't afford.





Let's hope the government (i.e taxpayer) doesn't bale out these businesses or people.