The discussion in Washington has changed dramatically. I mean, it's no longer a question of should we address entitlements - it's no longer a question of do we need to reduce spending in the future.

Yes. I don't think it would be appropriate at this point to raise taxes on anyone, certainly not in 2011.

The extension and expansion of the payroll tax holidays for workers would be number one on my list and key to avoiding recession.

I've done work for both Democrats and Republicans.

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.

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

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