Jasper Smith

Commentary on politics, economics, culture and sports.

More on housing

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A commenter on Greg Mankiw’s blog opines thusly on one of the various plans being floated to help financially distressed homeowners:

As someone who is saving for a down payment for a house in the DC area, I’m selfishly against it. I want the foreclosed houses coming on the market droping the prices.

Hmmm.  About the only thing I can think to say in reply is: AMEN.

I don’t think anyone welcomes the prospect of an increase in homelessness, but giving your house back to the bank and re-joining the ranks of the renters is hardly the same thing. This is the problem I have with all the current schemes out there designed to help people stay in their homes: they’re anti-free market in a most fundamental (and unwise) way. And yes, they’re also very unfair to a class of people who tend to be (on average) even poorer than financially stressed homeowners: renters.

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Written by Jasper

September 4, 2007 at 5:38 pm

Posted in Economics, Policy

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