An amateurish attempt at explaining current events large and small.
Saturday, November 01, 2008
The Difficulites with a Homeowner Bailout
David Leonhardt has a good article on the difficulties surrounding a bailout for homeowners. Leonhardt believes a bailout will incentivize those underwater on their mortgage but able to make payments to conveniently fall behind. Such a plan does seem rife with perverse incentives.