{"id":196257,"date":"2008-05-13T16:42:00","date_gmt":"2008-05-13T21:42:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2008\/05\/13\/roubini-likes-the-mortgage-proposal\/"},"modified":"2008-05-13T16:42:00","modified_gmt":"2008-05-13T21:42:00","slug":"roubini-likes-the-mortgage-proposal","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2008\/05\/13\/roubini-likes-the-mortgage-proposal\/","title":{"rendered":"Roubini Likes the Mortgage Proposal"},"content":{"rendered":"<p>If you&#8217;ve been following my posts on the various bits of legislation to help homeowners, you know that I&#8217;m in general agreement with Dean Baker, an economist I highly respect<sup>*<\/sup>, that most of the proposals are more about bailing out banks than homeowners, and that attempts to prop up home prices do little more than make housing less affordable.<\/p>\n<p>However, I also highly respect Nouriel Roubini<sup>\u2020<\/sup>, and he likes <a href=\"http:\/\/www.rgemonitor.com\/blog\/roubini\/252614\/\">the Frank-Dodd Proposal mortgage relief<\/a>.<\/p>\n<p>Seeing as how I&#8217;m not an economist, banker, or realtor, I thought that my readers (both of them) should see his take.<\/p>\n<p>First, he admits that this would be  nationalization of bad mortgages to a large degree, but he sees the lenders benefiting, after a 15+% haircut, because they get a guarantee, homeowners get to stay in their house, their neighbors don&#8217;t deal with the effects of vacant lender owned housing, and it is far less expensive to the taxpayer than a full bailout.<\/p>\n<p>I still think that real estate needs bankruptcy reform, and allowing mortgages on a primary residence to be adjusted by bankruptcy judges would be the best reform both in the long and the short term.<\/p>\n<p><sup>*<\/sup><span style=\"font-size:78%;\">Not only did he call the housing bubble, he actually <a href=\"http:\/\/moneycentral.msn.com\/content\/Banking\/Homebuyingguide\/P132998.asp\">sold his home on that expectation in 2004<\/a>, and he&#8217;s now renting.<\/span><br \/><sup>\u2020<\/sup><span style=\"font-size:78%;\">Perhaps the strident of the bear economists.  The frightening thing is that to the degree he has erred, it has been because he has been too optimistic.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you&#8217;ve been following my posts on the various bits of legislation to help homeowners, you know that I&#8217;m in general agreement with Dean Baker, an economist I highly respect*, that most of the proposals are more about bailing out banks than homeowners, and that attempts to prop up home prices do little more than &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[973,1002,1088],"tags":[],"class_list":["post-196257","post","type-post","status-publish","format-standard","hentry","category-economy","category-good-writing","category-real-estate"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/196257"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=196257"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/196257\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=196257"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=196257"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=196257"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}