Thursday, July 24, 2008

Housing Crisis

I think one of the elements missing in the discussion of the housing crisis is whether or not the government should be subsidizing home ownership to the extent it does or at all. Home ownership is generously subsidized through the tax code in the form of the mortgage interest deduction and additionally in the form of the implicit now made explicit guarentee of Freddie and Fannie's debts. Home ownership is something of a fetish in American political discourse and thus has long been untouchable. Maybe we can use this moment to move towards a more rational approach on home ownership rather than doubling down.

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