Conclusion In summary, broadly targeted policy is a central ingredient to restoring the health of the U.S. economy and global financial system. However, as I have discussed today, there is also a pressing need for more policy measures that specifically address the problems in the housing sector. We need considerable public support for housing finance until private credit and securitization markets are restarted.
We need to strengthen and augment our efforts to reduce preventable foreclosures. In addition, we need to turn far greater attention to limiting the costs of foreclosures that do occur. Such efforts are not only in the interest of the affected families and their communities but also in the interest of the financial institutions involved and the broader economy.