"The forces of the market are just that: They are forces; they are like the wind and the tides; they are things that if you want to try to ignore them, you ignore them at your peril, and ... if you find a way of ordering your life that is compatible with these forces, indeed which harnesses these forces to the benefit of your society, that's the way to go." -- Arnold Harberger, University of Chicago Economist
Saturday, November 22, 2008
How to Help People Whose Home Values Are Underwater
This is an interesting idea put forth by Martin Feldstein. He was chairman of Reagan's Council of Economic Advisors for several years. The goal of his plan is to get the credit markets working again by stabilizing the housing market. It would also enable many borrowers to avoid foreclosure. If it worked as he hopes it would (big if), it would cost the government a lot less than other plans that may be tried.