Fixing America’s Broken Housing Market

There is no "market" in the US housing market anymore, with a broad consensus emerging that the government will have to continue propping up the sector for the foreseeable future. This stance is perplexing and possibly dangerous, for it prolongs the deleveraging process and creates the conditions for Japanese-style malaise.

NEW YORK – A sure sign of a dysfunctional market economy is the persistence of unemployment. In the United States today, one out of six workers who would like a full-time job can’t find one. It is an economy with huge unmet needs and yet vast idle resources.