More foreclosures = lower prices?
Scott and Larry Kudlow tackle the thorny issue of housing prices and the federal government’s latest plan to modify mortgage plans to keep struggling homeowners afloat.
Both have identified the problem: Many homeowners are still “under water” in terms of the values of their homes purchased at the peak of the market and the values of their homes post-economic meltdown. The Obama administration is trying to address this issue – and Scott and Larry aren’t optimistic about the new program working out well.
But here’s a thought: The real problem is jobs. Specifically, the lack of jobs. The truly reckless lenders and borrowers have, largely, already paid the price for their antics last decade. There’s no benefit to beating up on them. The market’s already done the beating for us.
Many, if not most, of the homeowners struggling today are those who have lost an income or face some other economic hardship caused by a recession they didn’t start. The best way to help them is to spur the economy, generate more jobs and get more money into people’s hands so they can pay their bills.
Scott touches on this issue. But Larry is too busy venting his ideological “outrage” to understand that the true rant formula should be: Jobs = fall in foreclosures.
Your thoughts?
File under: Ranting at rants
