Housing market
Why it’s a problem: Federal backstopping of home loans could be artificially propping up prices (which have fallen dramatically in the past three years) and encouraging overly risky lending.
How bad it could get: Another sharp drop in housing prices and a spike in foreclosures—like the recent housing crisis but starting from a lower peak.
What we can do about it: Further tighten lending requirements; phase out the government-backed mortgage system.
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