This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Republicans Offer Unpopular Solutions for Housing Fix

MITT ROMNEY

Mitt Romney's approach to addressing the housing market has been more devious. Recognizing that a solution to the housing market's woes is more difficult than any of the candidates can really address in a debate, Romney has gone into deflection and diversion mode.

Recognizing that Florida homeowners who are underwater on their mortgages may not take kindly to his previous expressions of a free-market solution, Romney has portrayed himself as being sympathetic and sharing their distress and anger.

Romney's campaign released its first fully negative ad last weekend targeting Gingrich and his past work with Freddie Mac. "While Florida families lost everything in the housing crisis, Newt Gingrich cashed in," the ad says. "Gingrich was paid over $1.6 million by the scandal-ridden agency that helped create the crisis."

During Monday's debate, Romney spent enough time portraying himself as sympathetic to the "suffering" of Florida families while bashing Gingrich that when the debate turned in earnest to the mortgage crisis, Romney had 30 seconds in which he expressed the same free-market views he'd expressed in the past, suggesting the market must regulate itself and be allowed to hit bottom.

"We've got to get the government out of this mess; the government created this mess," he said. He also said the overall economy must recover before housing does. "We have to get the economy going again with people having jobs. You're not going to get housing recovered unless you get jobs going again," he said.

However, Romney's economic advisers disagree. While his adviser Glenn Hubbard, the dean of Columbia Business School, has argued for the reduction of interest rates on home mortgages to strengthen the market, Gregory Mankiw, an economics professor at Harvard University, agrees with the Fed's efforts to ease monetary policy.

Romney also has had a change of heart since the last presidential election, when he faced off with John McCain in Florida for the Republican nomination.

"Helping reverse the housing crisis is critical," Romney said Jan. 24, 2008. "And that's why expanding the [Federal Housing Authority's] loan requirements -- or, excuse me, if you will, loosening those requirements and expanding the ability of FHA to help out homeowners will make a big difference."

As president, would Romney stick to his current free-market stance? Or fall to the influence of his advisers and return to his past stance that government intervention is necessary?

3 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs