The principal linkages between Japan and the U.S. global economies are trade, financial markets, and commodity markets.

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.

In a forbearance, the homeowner pays interest and principal on a smaller mortgage, at least for a time, but still owes the full amount. The lower monthly payment helps with affordability, giving stressed homeowners a break.

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

I'm a registered Democrat.

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

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