The dysfunctional and regressive nature of policy in housing reflects the political configuration in Washington. For several decades, policies combined the efforts of social engineers clumsily seeking to expand home ownership with well-heeled interest groups skillfully lobbying for profits. The social engineers put taxpayer subsidies up for grabs, and the interest groups do the grabbing.
MarketWatch reports “Half of Americans can’t afford their house. As the housing market slowly recovers, a majority of homeowners and renters are finding it hard to meet rising rents and mortgage payments, new research finds.”
http://tinyurl.com/l9lv3fe
Do you think that the Federal Government should have provided direct subsidies, like writedowns of mortgages, based upon sound criteria? Like pay off 50% of the mortgage if there are two with income in the household?