Friday, October 03, 2008

Video of The Day - Feldstein's Plan

Martin Feldstein discusses housing and the economy as well as suggesting a rough outline of a plan that he believes would stop the bleeding.

His plan essentially sees homeowners making the choice to receive a credit towards their mortgage (effectively a lowering of their principle) in exchange for a conversion to a "recourse" loan.

So your trading a lower principle for the inability to just walk away... Can't say I like the idea.