Archive for the ‘Housing’ Category

Snippets From this AM’s Papers

April 23rd, 2012

It’s a common concern among productivity freaks, and I include myself in that esteemed group, that as evolving economies shift from manufacturing to services, productivity growth is likely to slow due to inherent differentials in the pace of output-per-hour (i.e., productivity) between the two sectors. As economist William Baumol, an early writer about this dynamic,… Read more

What Is This Thing Called…Escape Velocity?

April 9th, 2012

A number of economists, myself included, have been talking for awhile about the underlying strength of the recovery in terms of “escape velocity.”  The idea we’re trying to convey—or at least the one I’m contemplating—is a virtuous cycle of growth begetting jobs, which in turn generates incomes, which supports more growth, etc. Others talk about… Read more

Re the Economic Recovery: Housing Market Hasn’t Gotten the Memo

April 3rd, 2012

The housing market is taking a very long time to “correct.” I’ve often described current conditions there as “bouncing along the bottom.”  But while that’s the case in some parts of the country, in others, it’s a bit too flattering a diagnosis.  Here are some of the discouraging signs: –Prices haven’t quite bottomed: Yesterday’s Case-Shiller’s… Read more

Finally, Own-to-Rent…and a Count of Green Jobs

March 23rd, 2012

First, years after I first heard Dean Baker raise the idea, a major bank has introduced an “own-to-rent” program that would enable homeowners at risk of default on their mortgages to keep living in their homes. From the WSJ: Bank of America Corp. is launching a pilot program that will allow homeowners at risk of foreclosure… Read more

Tick-Tock, Ed

March 23rd, 2012

A few weeks ago I wrote a post arguing that principal reduction is one of the most promising items on the policy menu for helping homeowners facing default on their mortgage and foreclosure.  That post also notes that Fannie and Freddie have an integral role to play here, but have resisted doing so for reasons… Read more