Unsung hero

Mark Calabria,  Director of the Federal Housing Finance Agency, which oversees Fannie and Fredy, announced an excellent policy response to the virus.

People who are in financial trouble because of the virus can stop paying their mortgages. They have to contact their lender, but the process won't take endless paperwork. It won't be reported to credit bureaus. They still have to pay eventually.  People who were already behind at least won't be kicked out of their houses to go share the virus.  People who are renting houses can get the same forbearance if their renters can't pay.

This is classic forbearance -- don't force needless foreclosures -- well measured to the emergency at hand and not creating too many horrible incentives along the way. No, we don't have the federal government forgive every mortgage, either directly or forcing banks to swallow the losses, or all student loans, or all credit card debt. Federal resources are limited and a grand piñata debt jubilee is not needed and damaging in its own right.

Mar 22 Interview on NPR and an earlier March 19 NPR interview with transcript.

Even grumpy likes to pass along wise policy and good news on occasion.

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