Article of Note On the Foreclosure Crisis

I found the following article to be of interest. It is titled “New Evidence on the Foreclosure Crisis” and is found in The Wall Street Journal, p A13, July 3-5, at this link:

http://online.wsj.com/article/SB124657539489189043.html

While I can’t verify his analysis, the article is worth reading.

I don’t agree with all of his conclusions, especially his remark that housing prices are likely to stop declining soon.

However, his analysis and other conclusions are important in that they further support the idea that many of the policy efforts currently enacted to mitigate the foreclosure problem may be misdirected.

It is important to remember that much of the total intervention effort is aimed toward averting further weakness in residential real estate.

SPX at 888.65 as this post is written