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Resentment Grows Over Paying for Others' Foreclosure Misery

February 20, 2009

...Their frustration is justified, said Richard Green, director of the Lusk Center for Real Estate at the University of Southern California. But the economic risk of letting millions of homeowners default on their mortgages leaves the government with little choice.
"A year ago I would have been appalled at this plan," Green said. "Now I think we have to do something like this. The moral hazard argument is valid, but is trumped by the macroeconomic situation."...