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.