Housing Doesn’t Need a Crash. It Needs Bold Ideas.

A very good article by Gretchen Morgenson of the NY Times.

Only now, after it has become all too clear that the government’s feeble efforts to “help” troubled homeowners have failed, are people considering more substantive approaches to tackling the mortgage and real estate mess. Unfortunately, it’s taken the ugly specter of a free fall or deep freeze in many real estate markets to get people talking about bolder alternatives.

One reason the Treasury’s housing programs have caused so much frustration among borrowers — and yielded so few results — is that they seemed intended to safeguard the financial viability of big banks and big lenders at homeowners’ expense.

Read on for a very worthwhile and interesting take on the past failures and new ideas for the government regarding the housing market.