Greenhut in NY Times on Housing
Our editor-in-chief, Steven Greenhut, runs a column in today’s New York Times. It begins:
President Obama’s plan to change federal lending rules so people who are under water in their mortgages can refinance will make a political point about Republican intransigence on his jobs package but won’t sway many voters.
This rules-tinkering will only affect a minority of under-water homeowners, so this won’t gin up a still-deflating market. Interest rates weren’t particularly high at the top of the bubble, and a reduction in rate now won’t fix many people’s problem. Polls show Americans opposed to government bailouts of those who bought homes they could not afford. Many people refinanced and went on lavish spending sprees. (I recall asking one friend, rhetorically, where all the money went from the refinancing craze. He laughed and pointed at his new recreational vehicle.) Las Vegas is ground zero for the housing bust because it was ground zero for conspicuous consumption. How many Americans want to bail that out?
Read the rest here.
Oct. 26, 2011
May 24, 2013