The financial and housing market rescue left many Americans behind
By Andrea Riquier
Federal policy meant to stabilize the financial system and housing market has worsened inequality, with particularly damaging implications for the housing market, a new report argues. The paper, from the Washington-based consultancy Federal Financial Analytics, argues that policy steps that were implemented to stabilize the financial system, strengthen bank balance sheets, and lay out better protections for consumers and taxpayers, have had unintended consequences. The housing market now has “recovered” only for the wealthiest, cutting off the engine of wealth creation for the rest of America, the paper’s author, Karen Shaw Petrou, told MarketWatch. “I want this paper to draw policymaker attention. Homeownership is the most important source of wealth equality for low and moderate income Americans and for economic security,” said Petrou, who is Federal Financial Analytics’ co-founder and managing partner.