Interesting reading by Mark Zandi.

Given the current political and fiscal realities, there is no silver policy bullet that will avoid all this, but policymakers can take several smaller steps that will make a meaningful difference.

His ideas:

  • Allow for higher conforming loan limits for another year.
  • Extend new rules for mortgage refinancing to all Fannie and Freddie borrowers
  • Allow investors in foreclosure and short sales next year to expense their investments for tax purposes up front.

Click here to read the whole piece.