The key to house prices is the share of foreclosure or short sales in the total housing market. When that share rises, house prices will fall, because distressed properties sell for significantly less - currently around 25 percent below non-distressed houses.

Our economy isn't going to recover until the housing market finds its footing.

We need to get rid of the debt ceiling law. It's anachronistic and it's a problem.

Investor demand for distressed property has been healthy, as rents rise to levels that can cover investors' costs while they wait for properties to appreciate. Giving investors a small tax break should further juice up demand, supporting prices for distressed homes and the market in general.

The Tea Party was born out of the disgust many Americans felt early in the financial crisis upon learning that the federal government was even contemplating reducing the principal on some troubled mortgages.

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

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.