It has become fashionable to rail against government intervention in the economy, and the FHA is a favorite example by those trying to show the government's overreach. In reality, the FHA shows how government action during the Great Recession forestalled a much worse economic fate.

An overheating economy, characterized by accelerating inflation and rising interest rates, is another precondition for recession. This doesn't describe today's economy.

Our biggest challenge is to eliminate the popular perception that economists don't have anything useful to say.

Lenders look at potential borrowers from many angles before extending credit: How much of its income will a household need to put into debt repayment? How large is the down payment? Does the borrower have a job with a stable income? What is the borrower's credit score?

There are different flavors of recession. You can get into some pretty dark scenarios pretty quickly.

Buying a home wouldn't make much sense if house prices were likely to decline further; no one wants to catch a falling knife.

They called me the sexiest economist in America, and that was years ago, when I had hair and body mass and my teeth were shiny.