Earlier this month the Obama administration released their latest plan to speed the housing recovery by allowing underwater borrowers to refinance. While this will undoubtedly help a few people, in the long run, it will do nothing more than make it look like the administration is doing “something”.
After all the schemes we see coming out of Washington, I thought it interesting that the best housing economic theory I’ve seen in print recently comes from a cartoon that was published in the Deseret News in 1935: [Hat tip to Mr. Twist]
It’s too bad that the artist who drew this cartoon must have passed on some time ago. He would have my vote to replace Bernanke.