From David Streitfeld at the NY Times: Grim Housing Choice: Help Today’s Owners or Future Ones
Over the last 18 months, the administration has rolled out just about every program it could think of to prop up the ailing housing market … The goal was to stabilize the market until a resurgent economy created new households that demanded places to live.
As the economy again sputters and potential buyers flee… Some economists and analysts are now urging a dose of shock therapy that would greatly shift the benefits to future homeowners: Let the housing market crash.
I agree with Calculated Risk Blog comments to the NY Times article: I wouldn’t quite phrase it as “let the housing market crash” – instead I’d argue to stop trying to support house prices and think jobs, jobs, jobs.
Read more to find out why