Alan Blinder Calls For Nationalization In Response To Foreclosures

Pingree's Potato Patch
Studying the Economics of Detroit

While this isn't technically a Detroit story, given the huge number of foreclosures in the region I think this merits attention. Cruising Brad DeLong's blog, I see that Alan Blinder, co-author of a well-known economics textbook and general celebrity in the field, has come out in favor of setting up a federal mortgage repurchase institution as a way of averting the worst consequences of the impending wave of foreclosures that will be hitting over the next several months. Specifically, Blinder is suggesting reimplementation of a Roosevelt-era program called the Home Owners' Loan Corporation. It's disturbing to see Great Depression-era policies being the obvious model for responding to current conditions, but if the shoe fits...

Categories: Blog, GreatRecession