Sunday, March 30, 2008

A Plan for the Mortgage Mess

In the Times, Alan Blinder looks at the Frank-Dodd plan for dealing with the mortgage mess. He identifies some issues that still need to be resolved, but, overall:
[T]he Frank-Dodd proposal, which, while not a panacea, offers a smart approach to a knotty set of problems — an approach that should breathe some life into the housing market, the mortgage market and the related securities markets. Their design is not flawless. But do you know of any perfect solutions? It deserves our support.
See also the economic example worked out by Brad deLong.

No comments: