[T]he economic team wasn’t saying there was nothing they could do on housing. Nor were they saying that doing more on housing was a bad idea. They were saying that given finite financial resources they thought investing money in homeowner relief was a poor use of money compared to other initiatives they deemed more stimulative.
The basic idea was that you needed the best possible stimulus and thus the lowest possible unemployment rate and this would be the best possible housing policy. It made sense to me at the time, and I think it still makes perfect sense in retrospect.
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