- Volatility has moderated
- Very important that Fed communicates it’s plans
- GSE’s had flaws before crisis (government sponsored enterprises)
On debt ceiling and austerity, as noted in IMF report
- Fiscal policy focusing on short-run not long run
- Congress needs to address long-run issues
- Need a long-run sustainable route
On ending 30 year fixed rate mortgage
- Very important that average america has access to consumer friendly products that are affordable
- It’s not the instrument but the access to borrowing that is important
- Variable rate mortgages created problems when rates rose
- Disclosure and underwriting are important to make sure people can afford re-payments
