Just a short refresher on why we are in the current mess. There is a long term cause and a short term cause. Economics is never straightforward! The short term cause is the bursting of the real estate bubble and the subsequent collapse of home prices. This had two effects. First, it destroyed bank balance […]

One of the most frequent questions people are asking me is when and how will this crisis end? Unfortunately there is no clear answer,so perhaps we should go back in time and look at our policy options in the context of past recessions. First: the usual way we get out of a recession is through […]

The next component of the ongoing economic policy roll out is the housing support announced by Obama yesterday. The real estate business is the epicenter of our current crisis so calming things down in housing is essential to the success of the whole economic recovery plan. Here are the details of the plan, from this […]