Apparently the edit board still has not heard about it. It has an editorial today about the failure of the "Hope for Homeowners" housing bailout.
At one point it argues that the main cause of foreclosure has shifted from mortgage resets to job loss. This is wrong, wrong, and wrong. The main cause of foreclosures is that people owe more than the value of their home because their home has fallen in value. If house prices had continued rising then neither a mortgage reset nor job loss would lead to foreclosure, since people could borrow against the equity in their home to meet their mortgage payments. With close to 20 percent of all mortgages underwater, it is virtually certain that there will be a large number of foreclosures over the next two years.
Unlike many news organizations, the Prospect has remained staunchly committed to keeping our journalism free and accessible to all. We believe that independent journalism is crucial for a functioning democracy—but quality reporting comes at a cost. From Trump’s threat to the free press to Musk’s influence on our democracy, there is too much at stake in 2025 to stop now.
We’re behind on our goal to raise $75,000 to continue delivering the hard-hitting investigative journalism you’ve come to expect from us. Your support helps us maintain our independence and dig deeper into the stories that matter most.
We need you to make a year-end contribution today. Any amount helps secure our future and ensure we can continue holding power to account.
