August 16, 2008
...US: What other things should the feds be doing to stimulate the housing market?
Green: I am not sure we want to be stimulating housing per se - that is part of what brought us our current troubles. But to the extent that government can make sure well-qualified borrowers have straightforward access to 30-year fixed rate mortgages, I think it will help financial markets get sufficiently lubricated again. To me the basic problem is that financial markets are so panicked that the prices of even sound mortgages (outside of Fannie-Freddie world) are out-of-whack...