This Bloomberg column, “No Swimming Pool in Your Future,” looks at whether the consumer is as much an idiot as current policy of both parties suggests. The article doesn’t totally convey the depth of the data base and, therefore, the value of the findings of the authors (Harvey Rosen, Kristopher Gerardi, Paul Willen). Gerardi and Willen have also coauthored with Andreas Lehnert and Shane Sherlund a Brookings Paper, “Making Sense of the Subprime Crisis.”
The big sense is that in future mortgages will be cheap but unavailable. I’m expecting a sort of rent control phenomenon.