Housing - prices, housing market, free enterprise
The unprecedented level of government intervention in recent financial markets has mainly ignored the root cause of the financial institution balance sheet problem: housing prices. Rather than apply taxpayer dollars to the symptoms (i.e. buying securities), policies directed at reducing inefficiencies and poor incentives in the housing market will help fix the system from the bottom up and motivate the substantial capital waiting in the wings to buy distressed housing assets. This paper proposes eliminating some of these frictions and inducing positive optionality in the housing market to better incentivize fresh housing investment at a much lower cost than many of the alternative plans included in the $700+ billion congressional and administrative plans thus far. "
Maxam, C. L., & Maxam, M. B. (2009). A Freer Markets Approach To Fixing The Housing Market. Mountain Plains Journal of Business and Economics, 10(1). Retrieved from https://openspaces.unk.edu/mpjbt/vol10/iss1/1
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