tag:blogger.com,1999:blog-33399132.post1420957845262274918..comments2024-03-04T08:09:21.453-08:00Comments on Richard's Real Estate and Urban Economics Blog: The Democratic Party and SubprimeRichard Greenhttp://www.blogger.com/profile/02161226214739034402noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-33399132.post-18620854376577073732007-09-14T12:59:00.000-07:002007-09-14T12:59:00.000-07:00I couldn't agree more. All of these proposals to ...I couldn't agree more. All of these proposals to fix one thing have unintended consequences for the property markets. The Sarbanes Oxley regs for instance have pushed some jobs out of New York and into London with some negative impacts on real estate demand in the U.S. (of course it did increase the demand for self-storage space due to new record keeping needs).<BR/><BR/>An unintended consequence of bailing out even those where were led into loans fraudulently is that by providing extra liquidity to the market, prices may not fall very much. If we want to reward those who saved their pennies building up a down payment, in other words, playing by the rules, don't bail out anybody. Many more homeowners would default and be forced into forclosure and prices would fall rewarding the thrifty. <BR/><BR/>Sub-prime borrowers who were truly defrauded could be helped in other ways such as cash-payments to help them re-pay the balance of their loans.Elvis.Jimhttps://www.blogger.com/profile/13068825657187519551noreply@blogger.com