Analysis: N.Y. Fed's eminent domain proposal is the wrong medicine

06/14/2013 | Wall Street Journal, The

A Cornell Law School research paper proposing government use of eminent domain to take over some underwater home loans and cut principal is not only a danger to business confidence, but is also the sort of easy-money approach that spurred the housing bubble in the first place, writes Mary Anastasia O'Grady. The paper by professor Robert Hockett was posted to the Federal Reserve Bank of New York's website. "[H]is solution, to make write-downs easier when buyers get in over their heads, only makes it more likely that Fed accommodation will give us another bubble," O'Grady writes. Learn more at SIFMA's Eminent Domain Resource Center.

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