In an interview published Tuesday ahead of presidential debate, Romney told Las Vegas Review Journal's editorial board that solving the foreclosure crisis would require letting banks proceed against homeowners who have defaulted on their mortgages. New investors could then rent out the homes until markets adjusted.
"As to what to do for the housing industry specifically and are there things that you can do to encourage housing: One is, don't try to stop the foreclosure process. Let it run its course and hit the bottom," Romney said.
Romney elaborated during the presidential debate Tuesday night. "The idea of the federal government running around and saying, We're going to give you some money for trading in your old car...or we're going to keep banks from foreclosing if you can't make your payments...", Romney said, "The right course is to let markets work."
I can't agree more with Romney. I have been saying this since 2008!
The best thing the government can do to help the housing market is to do nothing. Things will get very bad, people will get foreclosed on...but then...like magic...the free market will take effect when prices get low enough to encourage people to buy. Then the price of housing will rise again as the housing market begins to feed on itself in an upward trend.
Ron Paul has my vote for 2012. However, Romney has the right idea on housing.
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