The Poor Are Better Off Renting

Why have we encouraged people to put all their savings in one asset?

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As housing prices have plunged there's been a major government effort to keep families in their homes. But negotiating lower interest rates or a reduction in the principal still leaves families with a heavy burden. Not surprisingly, a significant fraction of the families who have their mortgages adjusted ultimately end up in foreclosure.

The excesses of the subprime mortgages pushed many low-income Americans into this untenable position. But despite the terrible fallout, few in Washington challenge the notion that home ownership is for everyone.

This contemporary dilemma brought back to mind the story of my dad, who grew up in ...

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