Publication DateJune 2008
While immediate steps are necessary to stem foreclosures, a comprehensive solution requires a broader brush.
In recent weeks, political will has begun to amass in support of federal efforts to stem subprime foreclosures. In particular, the Federal Reserve’s actions to prevent the collapse of Bear Stearns emboldened proponents of foreclosure assistance, who saw the Fed’s intervention as a bailout of Wall Street. At the same time, the spillover effects of subprime foreclosures on the broader economy have quieted critics of federal intervention.
In this article, Jonathan Spader explains that while immediate steps are necessary to stem foreclosures, a comprehensive solution requires a broader brush.