Bridge over ocean
1 May 2010 Financial Analysts Journal Volume 66, Issue 3

Dimensioning the Housing Crisis

  1. Laurie S. Goodman

The author argues that more than one borrower in every five could face foreclosure absent stronger policy measures. The solution is to (1) reduce the housing supply through a modification program that explicitly addresses negative equity and (2) increase housing demand by expanding the availability of credit to investors.

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