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"(The) ability of government to quickly induce changes in behavior of large intermediaries...

"(The) ability of government to quickly induce changes in behavior of large intermediaries through financial incentives is quite limited," concludes an academic study of why the full force of the federal government has resulted in only 900K mortgage modifications in 3 years. Is that PhD-speak for "central planning doesn't work?"
Comments (6)
  • wyostocks
    , contributor
    Comments (8912) | Send Message
     
    No kidding?
    I'll bet the government paid millions for the study.
    5 Sep 2012, 10:44 AM Reply Like
  • Drew Robertson
    , contributor
    Comments (347) | Send Message
     
    I think the operative word is 'quickly'.
    5 Sep 2012, 10:46 AM Reply Like
  • Tack
    , contributor
    Comments (14311) | Send Message
     
    The reason for this is simple. Most of the original mortgages were made to persons either completely insolvent or on a course of fraud from the outset, so modifications of payment terms are near meaningless, as there was never either the ability or intention to pay, or both.
    5 Sep 2012, 10:48 AM Reply Like
  • Manosij Majumdar
    , contributor
    Comments (76) | Send Message
     
    All the authors are saying is that government intervention has its functions and its limits, like any practice.

     

    It’s ridiculous to claim that a specific limitation reflects on the ability of the government to do anything at all. And of course, not all government intervention is ‘central planning’ (‘‘Oh my God, the Soviets are here! Panic!’’)
    5 Sep 2012, 11:01 AM Reply Like
  • Tony Petroski
    , contributor
    Comments (6373) | Send Message
     
    "(The) ability of government to quickly induce changes in behavior of large intermediaries through financial incentives is quite limited,"

     

    Oh, I don't know. The financial incentives of the food stamp program seem to have induced changes in behavior although calling Michelle Obama a "large intermediary" may be over the top.
    5 Sep 2012, 11:33 AM Reply Like
  • The Patriot
    , contributor
    Comments (327) | Send Message
     
    "central planning doesn't work?" Why, they will just keep turning the
    screws tighter until the desired change is realized
    5 Sep 2012, 01:02 PM Reply Like
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