Olan Black asked:


What effect would freezing foreclosures have on the economy short and long term? is it a good idea?

Leanne

2 Responses to “Hillary Clinton supports freezing foreclosures, what effect would that have on the economy?”

1. Sam G on March 28th, 2009 2:10 am

   She will be another Dicky Nixon. Chaos!!!

2. Heywood on March 28th, 2009 11:27 am

   In every economy, there have to be tops and bottoms. The real estate business had a top that went way beyond a normal business cycle top. Therefore, the bottom is going to be painful until we shake out all the excesses of the over-exuberance of the past.

   Forcing a stop to all foreclosures puts a temporary halt on the shake out that is necessary for the real estate and banking markets to self-correct. It won’t correct the problem caused by the banks who made stupid loans. In the long run, stopping foreclosures will prolong the time it would take to recover from this bottom.