Let the markets work

Obama went to Nevada and announced a $1.5 billion effort to prevent foreclosures in five states hard-hit by the housing bust — Nevada, Arizona, California, Florida and Michigan — by feeding money into programs that would be developed and carried out by the housing agencies in the targeted states. This feel-good gesture may be good politics, but if the U.S. is ever to see its housing market return to normal, prices need to find their own level and some folks who should not own a house should be allowed to return to renting. Unfortunately, neither Dems or Republicans have the courage to allow this.