by Mark Thoma, University of Oregon (Department of Economics)

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A Home Price Firewall

Posted on June 19, 2008

Martin Feldstein presents his plan to reduce mortgage loan defaults:A Home Price Firewall, by Martin Feldstein, Commentary, Washington Post: Home prices are down 20 percent from their peak in 2006 and are falling rapidly... Experts predict an additional 15 percent decline during the coming year...The danger is that home prices could spiral further down, hurting millions of homeowners and pushing the economy into a deep recession. ...I believe the federal government should create a firewall to prevent too great a fall in housing prices. ... This can best be done through a program of mortgage r...

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bonds , deficit , economy , foreclosures , tax