A piece in The Wall Street Journal has former Massachusetts Governor Willard M. Romney walking the streets of North Las Vegas, Nevada and sticking to his guns on the foreclosure issue. Mr. Romney believes the foreclosure process should be allowed to run its course and put distressed properties into the hands of potential landlords.
First of all, Mr. Romney is right. A mechanism is in place to clear out the inventory and it should be allowed to work.
There is another issue here, however. What does this say about how we look at consumer debt and the decisions we make when it comes to purchases? Why do we leverage the purchase of houses with so much debt? Also, what type of role should government play in maintaining the value of homes?