Housing prices have dropped an average of 26 percent since last July, and many economists and realty analysts are recommending that the federal governement do... nothing.
The federal government has tried several options to try and stabilize the markets, thus far to no avail. The difficult decision to come is whether more stimulus money should be spent to keep the market afloat and try to help struggling homeowners, or to do what many economists and analysts are suggesting—let market prices collapse. The move would hurt current homeowners but benefit future homebuyers, who will be able to buy houses much more cheaply. Louise Story, Wall Street and Finance reporter for our partner, The New York Times, reports on the latest article by David Streitfeld.