So what we cannot afford now is to stay where we are. Federal President Joachim Gauck recently called upon all of us to have more courage for more Europe: “What Europe needs now are not doubters but standard-bearers.”5 We need to reinvigorate our social models by reforming our economies. And we need to harness the market mechanism in the service of humanity.
A number of efforts are underway. The Federal Reserve has worked with other agencies to put in place the standards and procedures for the new Hope for Homeowners (H4H) program, and I serve on the Oversight Board. These loans can help borrowers who might otherwise face foreclosure because the new loan payments are more affordable and the homeowners get some equity in their homes.