8/6/2019 Debt Default Would Be a Disaster

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8/6/2019 Debt Default Would Be a Disaster

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efault Would Be a Disaster

www.mtgprofessor.com/A%20-%20Public%20Policy%20Issues/debt_default_would_be_a_disaster.html[7/26/2011 10:32:05 AM]

but events set in motion years earlier acquire a momentum of their own and nobody has the motivation and/orpower to stop it. Since nobody wants it, everybody expects someone else to swing the axe. In that connection, the threat posed to mortgage lenders, Realtors and home builders by a debt default is enormous, butwhere are their spokespersons? When a bill is introduced to, e.g., eliminate tax deductibility of mortgage interest, thetrade groups are all over the Congress and Administration to beat it. But on an issue that threatens their very existence,they are nowhere to be seen. Their assumption seems to be that at the 11 th hour the politicians will prefer doing theright thing to laying the blame for disaster on their adversaries. In the current political climate, that is a terribly riskyassumption.

2011 Mortgage Professor