James Pethokoukis interviewed economist Glenn Hubbard
What would be the best way to deal with the housing market?
I would try to do what we can promote overall economic growth and do what we can to aid consumers in the housing market without subsidizing housing, the plan that Chris Mayer and I put out. It’s actually a pretty simple solution. Normally a recovery would be helped by a lot of refinancings given the very low mortgage interest rates. But that isn’t happening. And I think if we took away some of the structural impediments and allowed more refinancings, more people could stay in their homes. It would be like a long-term tax cut, and it wouldn’t cost the treasury a dime.
It’s a great interview. Go read the rest.