A vigorous political blog, not for the fainthearted.
I enjoyed the video. We had a calm, thoughtful fellow juxtaposed with a petulant, angry guy. They both made good points. The Laissez-Faire Santelli approach, of course, would have put us in a Great Depression in 2008. He has a Chicago Merc perspective and I get it. Thank goodness he was in the deep minority and his view did not obtain when it mattered.By the same token, we can't simply write down all of the country's under water mortgages - which (Reagan's chief economic advisor) Martin Feldstein recommended three years ago, when the tab would have been far less.Rental property buyers with good income and credit should be able to buy condos and single family homes with 5% down through FHA, within FHA loan limits. That would clear the excess inventory in less than a year. In the meantime, all FHA, Fannie & Freddie backed loans should be reset to current 30-year rates (about 4%). This will significantly reduce the foreclosure pipeline and pump over $100B into the economy per year. This idea was originally hatched by Glenn Hubbard, Dubya's chief economic advisor. Both of the above proposals would cost the Treasury a net zero. In fact, it would be bullish for tax receipts - at all levels of government - shortly after implementation.
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