Appearing Friday night on Bloomberg’s “Political Capital” television program, former Treasury Secretary Robert Rubin called for quick action to address surging home foreclosures
“I think – it clearly has undesirable side effects; it has moral-hazard effects; it has bailout effects. On the other hand, I at least think that while we could get through this without substantial additional trouble, the risks are high enough or great enough where I think it should be very, very seriously considered.”
I think there’s also a very real possibility that a lot of trouble could lie ahead.
And at least my view, since we’re in uncharted waters, and I don’t think there’s a way to make a probabilistic judgment about where you are in that spectrum, I think we need to take these risks very seriously and I think that we should – from a policy perspective – take whatever measures we can find that we think are sensible to try to reduce that risk,” Mr. Rubin said.