I like this piece by Matthew Padilla, who writes the OC Register’s Mortgage Insider blog. He quotes two economists who say that stopping foreclosures is not necessarily a good thing for the economy. Christopher Thornberg of Beacon Economics in Los Angeles tells Padilla that “foreclosures are good for the economy.” How? People who stop paying unaffordable mortgages and lose their homes suddenly have more money to spend on non-housing goods and services. Not such a bad thing, right?
Hat tip to patrick.net.