It’s Still Housing, Stupid
As Mary pointed out earlier in the week, the Obama administration’s anti-foreclosure plan has fallen far short of the millions of homes it was designed to save.
Jul 31, 2020486.9K Shares7.6M Views
As Mary pointed outearlier in the week, the Obama administration’s anti-foreclosure plan has fallen far short of the millions of homes it was designed to save. Today, editorialists at The New York Times notethe significance of that failure for the larger economy:
“„The economy is hard pressed to function, let alone thrive, when house prices are falling. As home equity erodes, consumer spending falls and foreclosures increase. Lenders lose the ability and willingness to extend credit and employers are disinclined to hire. True economic recovery is all but impossible.
Of course, housing advocates have been screaming for years that reducing principal balances is the surest way to stabilize the housing market for the sake of the economy. And yet the White House last year, pressured by the big mortgage lenders, abandonedan earlier vow to empower bankruptcy judges to change the terms of principal mortgages to help struggling homeowners avoid foreclosure.
That little saga never got the media attention of, say, the balloon boy, but — with unemployment still in double digits and Democrats scrambling to create jobs ahead of the 2010 midterms — it might just prove to be the single greatest factor in determining what Congress looks like in 2011.
Paolo Reyna
Reviewer
Paolo Reyna is a writer and storyteller with a wide range of interests. He graduated from New York University with a Bachelor of Arts in Journalism and Media Studies.
Paolo enjoys writing about celebrity culture, gaming, visual arts, and events. He has a keen eye for trends in popular culture and an enthusiasm for exploring new ideas. Paolo's writing aims to inform and entertain while providing fresh perspectives on the topics that interest him most.
In his free time, he loves to travel, watch films, read books, and socialize with friends.
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