Housing prices peaked more than six years ago, in April 2006—meaning that the housing bust has now lasted longer than the post-millennial housing bubble. The Obama administration’s failure to deal with the legacy of debt continues to douse any hopes of recovery. It poses another danger, too. As the purveyors of conventional wisdom refuse to proffer reasonable remedies to a solvable problem, more creative people can credibly present radical—and completely misguided—solutions to increasingly desperate local governments. The latest such gambit: using eminent domain as a tool to rescue underwater mortgages.
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