I understand the natural political reaction to trouble and sorrow is to throw money at it to cure it, but the cure for housing lies, from my very limited perspective, in streamlining foreclosures, not stemming them. As soon as we can get property out of the possession of people who can’t afford it and need a subsidy to stay in it and into the hands of people with the capability of paying for it (admittedly, at painfully reduced prices), the sooner we’ll get back on track. In Greenwich alone, I wouldn’t be surprised to see fifty new spec houses in various stages of foreclosure in the next six months. These will hang around and drag down the price of everything around them. Foreclose them, sell them off, get rid of the inventory and let’s start again. The current plan will prolong the agony but do nothing to address the cause, which is too many over-priced houses and too few buyers.
That’s just my opinion and I am more than willing to admit that maybe the economists in Washington know far more than I do. They’ve hidden that knowledge so far, but perhaps they’re jut getting ready to spring it on us, dazzling us all.