Thursday, January 15, 2009

U.S. Congressman Proposes Bill for Government Refinances

Although I've never been to Merced, California, the pictures on the city's website depict a very inviting scene. White stucco buildings framed by palm trees and all set against a sky of brilliant azure. They evoke notions of the California us icy and snow-laden Midwesterners yearn for and dream of. But when you study the homepage more carefully, you'll be struck by a very sobering link captioned "I want to ... avoid foreclosure". The reason for this is that Merced, California, has one of the highest foreclosure rates in the country.
Merced is located within the U.S. Congressional district represented by Representative Dennis Cardoza. Earlier this month, Mr. Cardoza proposed a bill in the U.S. House of Representative suggesting a plan very much like the one suggested by Professors Hubbard and Mayer of the Columbia Business School; and that I have written about in this blog on October 8, 2008 and November 17, 2008. Mr. Cardoza, in support of his proposal, states, "You cannot fix the economy unless you fix the foreclosure crisis." He contends that the core of the current economic crisis is the "ravaged housing market" The following link will take you to the full story published in the Merced Sun-Star on January 8, 2009: http://www.mercedsunstar.com/167/story/628022.html
I could not agree with you more, Rep. Cardoza. The fact that housing alone supported a floundering economy a few short years ago further buttresses the argument that the ailing housing sector is exacerbating the ills in the larger economy. I hope this bill has legs and makes it through Congress. If not, I hope it at least has impact on where we should focus attention in creating solutions.
I am with you all the way, Congressman Cardoza. I wish I could vote for you, but, sadly, I am here in Chicago; shivering.

1 comment:

Michael L. Rubin said...

I have been to Merced, CA and it isn't exactly Heaven. That said, as housing accounts for 13% of our total economy, I agree!