Can leaders negotiate a deficit deal by August 2?
Yes. In fact, they must. Many of the crazy things people are saying – that it would be no big deal if we don’t raise the ceiling by the deadline – are just to gain political leverage in the talks. But I sure hope I’m right.
What meaningful deal can they broker?
They can enact a combination of spending and revenues as in the President’s framework, the fiscal commission’s plan, and others. A short-term resolution would only amplify concerns about political dysfunction.
What can be done right now to enhance job creation?
FAST: Fix America’s Schools Today. It’s a national infrastructure program to repair, retrofit, insulate, paint, and generally fix up the nation’s public school stock.
On housing, should the administration do more to fix it?
The administration could do more, such as strongly nudging GSEs [government sponsored enterprises] to go deeper in loan modifications, including principal writedowns. Right now we’re just bumping along the bottom.
How has the American Dream shifted? Does it still include home ownership?
The first part of this question is way too deep for a quick answer. Home ownership is still part of the dream. But bad housing finance can easily make that dream a nightmare.