• 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