Wednesday, July 14, 2010

Consequences

Consequences of both the unemployment and foreclosure crises are unappreciated. Unoccupied housing stock degrades pretty fast, especially when there are trashouts and neighborhoods with significant numbers of empty homes. And many skills also deteriorate pretty fast, or are perceived to do so, for unemployed people.

The stimulus was too small and HAMP was a complete failure. The consequences will be with us for some time.