The Problem Is Still Falling House Prices

online.wsj.com - 10/4/2008

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A successful plan to stabilize the U.S. economy and prevent a deep global recession must do more than buy back impaired debt from financial institutions. It must address the fundamental cause of the crisis: the downward spiral of house prices that devastates household wealth and destroys the ...

online.wsj.com - 10/2/2008

First, Let's Stabilize Home Prices

— online.wsj.com — We are in a vicious cycle: falling housing values cause losses on securities, which reduce bank capital,... thereby tightening lending and causing house prices to fall further. The cycle has spread beyond housing, but housing is the place to fix it. ... (more) First, Let's Stabilize Home Prices

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Economist's View: links for 2008-10-04

Greg Mankiw's Blog: More Commentary on the Financial Mess

The Mess That Greenspan Made: Martin Feldstein lays an egg

SeekingAlpha.com: Home Page: Propping Up Home Prices Will Not Solve the Crisis

SCSUScholars: How much hope do homeowners need?

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links for 2008-10-04
Economist's View — ... the decoupling debate - Vox EU Should the Reserve Bank of India follow the Fed? - Vox EU Dinner with the Econ - Information Processing Liberalising visas and work permits: Possible negotiating initiatives - Vox EU Don't Let Google Freeze the Airwaves - WSJ.com HIV, fertility, and Africa’s future - Vox EU Rotten Economics and Rotten Teeth - Richard H. Serlin The Problem Is Still Falling House Prices - Feldstein - WSJ.com Early ...

More Commentary on the Financial Mess
Greg Mankiw's Blog — Thomas Sowell Arnold Kling Martin Feldstein

Martin Feldstein lays an egg
The Mess That Greenspan Made — Well, on a positive note, at least Martin Feldstein didn't use the words "root" and "cause" right next to each other when laying this egg of an op-ed in yesterday's Wall Street Journal aimed at helping solve the credit crisis. ...

Propping Up Home Prices Will Not Solve the Crisis
SeekingAlpha.com: Home Page — ... Well, on a positive note, at least Martin Feldstein didn't use the words "root" and "cause" right next to each other when laying this egg of an op-ed piece in Saturday's Wall Street Journal aimed at helping solve the credit crisis. ...

How much hope do homeowners need?
SCSUScholars — ... would receive from the government the difference between the principal on the original mortgage and the mortgage "at terms manageable for the homeowner." I still need some flesh on that. I would want to know if the 31% payment-to-income ratio is the definition of manageable. I'd want to know if the government can be certain the initial purchase price on the home was not set in order to qualify someone for a shady mortgage. Those details aren't there, and don't look in Marty Feldstein's pitch from last Friday (which is not exactly the same proposal anyway, but a ...