Can The Government Really Help Homeowners? How Much and How Far?

HOW FAR CAN GOV’T GO TO HELP HOMEOWNERS? – Progressive Policy Institute’s Jason Gold has a new piece out later this morning on the government using eminent domain to help underwater homeowners: “Using government’s eminent domain powers to force investors to eat the losses on underwater mortgages is a very drastic remedy to the problem of negative equity. While it could ease the burden on some homeowners, it could also drive private investment out of California housing markets. This would only prolong the housing slump and deepen the state’s economic malaise.”