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|Relief for Underwater Mortgages|
Feb. 7th, 2011 at 3:20 pm
Just a month ago, the idea of a government-driven solution to the mortgage problem made my blood boil, but I’ve grown to be a lot less hostile to the idea.
Charles Krauthammer does an excellent job of summarizing the problem with underwater mortgages:
I still think that the best solution is widespread foreclosure to dump supply into the housing market and create a deluge of affordable housing. After all, affordable housing has been the ostensible goal of government housing policy for several decades; we’re finally within shooting distance, so why stop now.
That said, a mobile workforce is essential to the productivity of a 1st-world economy. Characterizing a mortgage solution in terms of enabling the mobility of the American workforce makes it seem a lot less idiotic.