Greg Mankiw's Blog: Cooley on Mortgage Restructuring

Greg Mankiw's Blog: Cooley on Mortgage Restructuring

The most important role for public policy is to provide incentives for servicers to restructure and modify loans, to make certain that shared appreciation contracts are part of the policy mix, and to address the legal barriers to modifying securitized loans. It may well be that policy inaction and dithering is the largest barrier to progress to date. Households and investors may be holding out for better terms, bigger bailouts and for investors to be made whole. If so, it is simply because the leadership in Washington has been unable to focus on an unambiguous approach to the problem. In the meantime, neighborhoods collapse.

Always come to the government and policy. I am not sure who are the people made the policy first place but they should be deadly wise men of integrity. I see, Laying the foundation, the root should be strong and agile - bit of like a faithless whore, who only faithful her profession - so that any force can’t make them broke, make them effective and stable, that gives people security for long-run and that lead to a nation prosperity and the healthy planet so on… Then who is the High Priest?