Tag Archive for Foreclosure

New CPEG Working Paper – ‘Housing: The Root of it All’

Sometimes it seems as if the housing bubble (which was the trigger for the ongoing Long Depression, or as some call it, the Great Recession) has been forgotten. That is very unfortunate – both for the success of policies designed to restart the US economy and for building a politics that could change the US political economy to benefit the 99% rather than the 1%. Authored by CPEG’s Bill Barclay, this new working paper examines the political economy of housing as the root of the Long Depression.

The paper begins by summarizing the scope of the existing housing catastrophe and then provides an overview of the policies and practices that created the housing bubble and collapse. The final two sections describe the work of the Home Owners Loan Corporation in the 1930s/40s and, using this model, outlines some possible policies to address the housing problem we face today.

Read the Working Paper (PDF)

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CPEG Commentary on Settlement to End Foreclosure Probe

Authored by CPEG’s Bill Barclay, an expert on the housing crisis with 22 years of experience in the Financial Services Sector

According to press accounts, there will be a deal between the banks and the state Attorney Generals over housing/foreclosures, etc. A bubble in housing prices (driven by finance) got us into the Lesser Depression and it could get us out. But I don’t think this deal is it.

The banks are going to fork over $25 billion, plus access to refinancing by 300,000 homeowners now shut out, and perhaps some payments to 750,000 people who lost homes to foreclosure. This may sound like a lot of money – until you remember the scope of the problem.

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