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.

Defaulting on the nation's debt would be cataclysmic. The U.S. Treasury's Aaa rating is the one constant in the world's financial system. When times are bad anywhere on the planet, global investors flock to Treasury bonds because they know they will get their money back.

Indeed, the FHA was born out of the Great Depression, which was also caused in significant part by a foreclosure crisis. Mortgages in the early 1930s were mostly three- to five-year 'bullet' loans, which did not amortize and were due in full at maturity.

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

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.

If Mr. Trump gets precisely the policies he says he wants, then the economy will suffer a recession.

My policy is I will help any policymaker who asks, whether they be a Republican or a Democrat.