Some seem to really dig plans for the housing market that stick to the banks. I’m down; I dig redistributional policy and we should encourage people to do what’s best for them and their families (even if its bad for the banks for “the system”).
I just took a peak at the CalPERS annual statement and it appears they have a huge stake in the bank-side of the mortgage industry (over $10B in MBS and large positions in bank stocks). So here’s the question: what theory of justice requires redistribution from public service retirees to underwater home owners? Less snarkily: why are you so sure that the owners of these banks are any better off at the moment than the folks that bought too expensive houses?
Wouldn’t it be better to directly help poor people?