A major story throughout this semester will be what government (fed, state, and local) can and cannot do to prevent a second recession. I'll highlight stories to that effect as they come along.
Here's one from the Washington Post that asks whether effective housing policy might do the trick. One of the reason why Texas did not suffer as much through the recession as bad as other states is that regulations (greater ability to build lots of homes and restrictions on what one could do with home equity loans) ensured that homes were not overvalued and fewer homes now are underwater (worth less than the mortgage).
Is housing relief an appropriate stimulus to the economy?
