• Policymakers should minimize unneeded foreclosures
  • No single solution for housing problems
  • Persistent and careful efforts needed on housing
  • Prices will fall in the absence of government action

Headlines from a paper the Fed produced for the Congress. Rather than let markets work, the Fed remains intent on propping up the housing market, like Japan kept zombie companies limping along for years. Sometimes you just have to take the pain and get it over with rather than prolong the agony via endless (and often fruitless) government action.

The report will be music to the ears of the White House, who would love nothing more than to throw more money at housing in an election year. Homeowners vote.