Obama today rolls out another set of proposals for dealing with the economic crisis, one focused more on the human consequences of the crisis.
The plan includes helping out states and localities, allowing people to cash out part of their retirement savings without tax penalties, and an arrangement with banks that would include a 90-day moratorium on foreclosures for many homeowners.
I guess he doesn’t think its taken long enough for home prices to reach a bottom and wants to prolong the agony. Prices need to fall until demand emerges. That appeared to be starting to happen last month until everyone in Washington panicked and held the nation hostage for 3 weeks. The sooner we get the foreclosures done, the quicker we’ll be able to stabilize the inventory of unsold homes. Then when the investory is reduced to a more normal size, home builders can get back to work. Isn’t that what we want? Why would do anything to prevent that from happening as soon as possible?