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February 10, 2012
Lisa M. Krieger: Man with defibrillator demands access to his own heart's information
David G. Savage: Why activists may not be in a hurry to have High Court rule on alternative marriage
February 9, 2012
Laura McMullen: 10 Least Expensive Public Schools for Out-of-State Students
Kimberly Palmer: How to actually enjoy -- relaxing, financially -- your vacation
February 8, 2012
Warren Richey: Why momentous Prop. 8 ruling might not satisfy gay-rights groups
Menachem Wecker: Though Controversial, LL.M.'s Can Lead to Specialized Legal Jobs
The Kosher Gourmet byDana Velden: Going to the bother of making soup? You know it better be good. This CREAM OF TOMATO SOUP certainly is! And it's a cinch to make, too (Includes techinques and serving secrets)
February 7, 2012
Frank J. Gaffney, Jr.: Caught off-guard? President's Super Bowl interview with Matt Lauer gives those who need a reason not to vote for him, a darn good one
Suzanne Bohan: Leaping lizards! Tiny reptiles advancing robot design
February 6, 2012
Jonathan Tobin: Iran Threatens Israel With Destruction, But the New York Times Doesn't Hear It
Jeffrey Fleishman: In newly democratic Egypt, tens of democracy activists jailed, to stand trial; their groups are 'threatening the stability of the homeland'
Julie Deardorff : Researchers say antioxidants may not be that effective and could do more harm than good
Mark Clayton: How did Anonymous hackers eavesdrop on FBI and Scotland Yard?
February 3, 2012
Edmund Sanders : Israeli official says Iran is creating missile that could reach East Coast of US
Victoria Kim: Immigrant-smuggling ring used black drivers to avoid racial profiling
February 2, 2012
Jim Carney: Wrong number call may have saved her life
Reza Kahlili : Ex-CIA spy in Iran's Revolutionary Guard: What Obama doesn't grasp about striking deals with Tehran
Tina Susman: For woodchuck rescuer, every day is Groundhog Day
February 1, 2012
Brian Bennett: US officials see increasing threat of domestic attack from Iran
Emily Brandon: How to Take Advantage of New 401(k) Fee Disclosures
January 31, 2012
January 30, 2012
Paul Richter and Ramin Mostaghim: Misreading Teheran's limits -- deadly and economically devastating as they may be -- is a risk administration, Europe seem willing to take
Suzanne Bohan: Warning: Nap-deprived tots missing more than sleep, study finds
Meg Handley: Banks Revamping Rewards Programs to Woo Customers
January 27, 2012
Caroline B. Glick: Obama: Of course I intend to prevent a nuclear holocaust . . . in a few months
Yochonon Donn: In liberal New York City, fervently-Orthodox Jews may soon be getting a district to call their own
Jeannine Stein: An inflated ego and thinking you're 'all that' doesn't just make others sick of you, it can make you ill
Katy Hopkins: New budget rules may affect how much money you get for college
January 26, 2012
Ed Koch: To the New York Times, calling for the murder of Jews by those capable of having their incitement taken seriously isn't news
Jeannine Stein: Mental illness struck one in five U.S. adults in 2010: Report
January 25, 2012
Richard Simon: House passes two bills endorsing the use of religious symbols at military memorials
Fred Weir: Putin: Multiethnic Russia cannot survive as a US-style 'melting pot'; must find its own way
Susan Johnston: 5 Sneaky Coupon Strategies Consumers Should Watch Out For
January 24, 2012
Carol Clark: The price of your soul: How your brain decides whether to 'sell out'
Caroline B. Glick: America lost most in 'Arab Spring'. Sadly, many voters still don't grasp the extent
Warren Richey: Drug criminal scores win in GPS ruling from conservative-leaning high court
Erika Bolstad: Black conservatives gather to talk about gaining strength
January 23, 2012
Melissa Dribben: Jewish voters to play a key role in Florida's Republican primary
Jordan Rau: In quest to grow, Catholic hospital system will announce this morning its break from church
Ali Safi: U.S. envoy gives Taliban terms for peace talks
January 19, 2012
January 18, 2012
January 17, 2012
Frank J. Gaffney Jr.: No-kidding red lines: U.S. response to an Iranian nuke may be bluster, but Israel's won't be
David G. Savage: They sued their principals after slandering them online --- now the cases are headed to the Supreme Court
David Francis: Where to Invest in 2012: With stocks expected to rebound, opportunity abounds for investors
January 13, 2012
Ben Lynfield: Israeli lawmakers move to annex Jewish Judea, one museum at a time
Alexia Elejalde-Ruiz: Thriving through touch: Gentle massage helps older people with low mobility improve in mind and body
January 12, 2012
Warren Richey: Landmark Supreme Court ruling a 'resounding win' for religious groups
Warren Richey: Supreme Court says no to new rule on eyewitness testimony
John Fauber : Statins found to raise diabetes risk in postmenopausal women
Katy Hopkins : Consider This Before You Pay for an Online Degree
The Kosher Gourmet by Joseph Erdos: This mushroom and barley soup has an intense -- almost nutty -- flavor that mixes robust with Middle East. It has creaminess without cream
January 11, 2012
Shari Roan: Millions of atrial fibrillation sufferers at risk for devastating, but preventable, stroke
Tom Hussain: Pakistan -- recipient of more than $21 billion in civilian and military aid -- speeds pursuit of Iranian pipeline, defying US
David G. Savage: High court signals it won't be loosening TV's 'indecency' rules
Stephen Ceasar: Oklahoma's Islamic law amendment can't go into effect, court rules
January 10, 2012
Reza Kahlili: From an ex-CIA spy: US must exploit new split in Iran's Revolutionary Guard
Karen Kaplan: Study: Nicotine replacement products ineffective when used in real-life situations
January 9, 2012
Michael Doyle: Put through legal hell over dream home, couple fought back hard --- all the way to Supreme Court
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Jewish World Review
April 2, 2008
/26 Adar II 5768
Time for a '30s-style government mortgage role
By
James Klurfeld
http://www.JewishWorldReview.com |
Enough already with the brouhaha over Sen. Barack Obama's pastor and whether Sen. Hillary Rodham Clinton was greeted by sniper fire in Bosnia. In this crazy kaleidoscope of shifting charges and countercharges that passes as a campaign, there was a moment of real importance last week that shouldn't get short shrift.
It had to do with how this country should be dealing with the home mortgage crisis and what the proper role for government ought to be. What's happening to the mortgage markets affects not only those with subprime loans but everybody who owns a home or wants to own a home - which means the vast majority of us.
We are facing the most serious downturn in the housing market since the Great Depression, at least according to some experts. And the one proposal that makes the most sense to deal with the problem is, unfortunately, getting tangled in the partisanship of the political debate. That proposal is to create a new version of the Home Owners' Loan Corp., which helped millions of homeowners refinance their loans during the mid-1930s. It has been proposed by such prominent economists as Alan Blinder, the former vice chairman of the Federal Reserve.
The principle is simple: A government agency would buy old mortgages from banks and issue new loans to homeowners. The problem was much larger in scale during the Depression, but by 1951, when the HOLC closed its books, the agency had turned a small profit.
It seems such a sensible - and time-tested - approach that I'm stunned officials from both parties don't get behind it. But Sen. John McCain, who will be the Republican candidate for president, gave a speech this week indicating he opposed government-backed solutions. A new version of HOLC seemed to be his target. Both Sens. Obama and Clinton favor some aspect of the Blinder approach.
This shouldn't be a matter of partisan politics, but a practical question of what will work at a difficult time. But we have been stuck in an ideological straitjacket for the last 27 years. The mantra has been that the market can solve all problems and the government only screws things up.
I'll take second place to no one in my belief in the genius of the marketplace, but if we have learned anything in the past century, it's that government sometimes must play a role in regulating and correcting the market when it goes haywire. The mortgage crisis is a classic case.
The economic shock we're going through now might finally push the political pendulum back from the pure free-market side. Imagine, for instance, if Social Security had been privatized and there were an even bigger Bear Stearns-type of collapse. The economic repercussions would be staggering.
McCain has always struck me as a pragmatist, but he has been especially sensitive to his party's conservative wing in seeking the presidential nomination this time around. And he has not shown great interest in the nuances of economic policy. I fear he is unnecessarily boxing himself into a position he wouldn't want to be saddled with if he gets to the White House.
Blinder and other economists say there are any number of ways to create a modern-day version of the HOLC. Getting the housing market righted is critical, because its collapse is at the center of the current economic crisis. But what we don't need is a knee-jerk ideological debate that results in just another example of government gridlock and presidential vetoes.
In fact, this is a situation that shouldn't wait for the next president to take office. Congress, with the support of the candidates, should be taking action now.
Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.
Comment by clicking here.
James Klurfeld is a professor of journalism at Stony Brook University.
Previously:
03/11/08: Power rightly belongs to Dem superdelegates
03/04/08: A neophyte looks like a pro, and vice versa
02/22/08: The allure of Obama for young people
02/19/08: Obama sounds good, but words aren't enough
© 2008, Newsday Distributed by McClatchy-Tribune Information Services
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