WaPo "Facts" About The Economy
Dean Baker fisks this WaPo "news" article:
The Washington Post appears to have outdone itself in a discussion of the politics surrounding the foreclosure crisis. For beginners, it told readers that:
[. . . T]he White House, which is looking past the midterm elections, has been restrained. Housing and Urban Development Secretary Shaun Donovan wrote over the weekend that 'a national, blanket moratorium on all foreclosure sales would do far more harm than good, hurting homeowners and home buyers alike.'"Okay, it's fun with logic time. Secretary Donovan wants more foreclosures, presumably to further depress prices. [. . .] If Donovan thinks it is good to speed up the foreclosure process then why is the administration pushing HAMP? [. . .] That may make sense to the Washington Post, but probably not to anyone else. [. . .] The article then gives us a quote from a Democratic consultant without a name: "But shutting down foreclosures has the potential of shutting down the whole housing market, which isn't helpful to anybody."
Let's see, we have how many hundreds of thousands of homes that non-foreclosed sellers are putting on the market each month, plus a backlog of several hundred thousand foreclosed homes already in the banks' possession. How exactly does a moratorium on foreclosures shut down the whole housing market?
Of course it doesn't. But the cloud on titles to homes does. The Obama Administration wants to sweep reality under the rug. Baker does not mention one WaPo "fact" that astounded me:
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