Foreclosing On The Free Market: How To Remedy The Subprime Catastrophe

Source: John Atlas, Peter Dreier, Gregory D. Squires, New Labor Forum, Vol. 17 no. 3, Fall 2008
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Business leaders, activist groups, and politicians are calling for our government to do something before the situation worsens. The Bush administration proposed a bail-out for big Wall Street firms, but as of this writing (May 2008) has done little for homeowners except asking banks to voluntarily restructure troubled loans. The subprime crisis has been a hot-button issue during the 2008 presidential campaign. The Republican candidates were conspicuously silent, while the Democrats offered reasonable ideas for coping with the symptoms (especially regarding homeowners facing foreclosure), but no major candidate proposed the sweeping reforms needed to address the root causes–four pillars of which are outlined below.

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