Leamer says he also worries about “the regulatory changes that will make it harder for Americans to get homes. The market was inappropriately lax. We’re likely to flip in the other direction. There will be all sorts of restrictions” on who can buy a home.
But the biggest side effect, Leamer says “is the moral hazard” the government could be creating. When the government bails out stupid or risky behavior, it encourages the same kind of behavior.
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