Who Deserves What Now?

Hilzoy has a detailed analysis of Obama's housing plan. Her bottom line:

I'd be opposed to the government stepping in to encourage banks to modify these loans, except in cases of fraud. But these are not normal circumstances. The economy is melting down, and foreclosures are a big part of the reason why. Foreclosures always impact people other than the people foreclosed on, for instance by driving down neighborhood property values. But now, of all times, they are having massive impacts on the rest of us. And the Obama plan, which does not just wave a magic wand and make people's excess debt disappear, seems to me like a good start on addressing them.

Bonus Hilzoy snark here. Like Hilzoy, I'm prepared to abandon some principles in favor of pragmatic action right now - as long as we find a way to get back to the core principles of fiscal solvency and personal responsibility in the medium term. Listening to the president today talk candidly and constructively about these issues was a reminder to me of why I supported him. He was free of cant; honest; open to differing views; and, God help me, adult. I wonder if Washington can handle it - on both sides. But those of us out here should be doing what we can to lend him support for the tenor and tone of what he is now doing.