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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, 2020
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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.
Hajra Shannon

Hajra Shannon

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Hajra Shannona is a highly experienced journalist with over 9 years of expertise in news writing, investigative reporting, and political analysis. She holds a Bachelor's degree in Journalism from Columbia University and has contributed to reputable publications focusing on global affairs, human rights, and environmental sustainability. Hajra's authoritative voice and trustworthy reporting reflect her commitment to delivering insightful news content. Beyond journalism, she enjoys exploring new cultures through travel and pursuing outdoor photography
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