The Real Deal Miami

Can the housing market survive without government subsidies? 

March 19, 2010 10:00AM

With five million borrowers in default, when those homes hit the market they will add so much inventory that values will plummet, said Howard Glaser, former Clinton housing official, on CNBC. The government must provide some incentive to stabilize those values. Some say the government has been doing more to subsidize mortgage lending, making loans where the private sector won’t. Josh Barro of the Manhattan Institute said: “The government is desperately trying to prop up housing prices. This is really just delaying the inevitable.”