•  
  •  
 

Abstract

This article discusses the rise of consumer debt in the United States, and argues that relaxed lending standards resulting in more people buying unaffordable homes. The current financial crisis and its effects on homeowners are examined, as well as policy responses to the crisis. The author suggests that instead of waiting for federal bailouts, localities take proactive steps to prevent the crisis from destroying their cities. Finally, the article stresses that the crisis threatens to leave urban areas with a significant number of abandoned homes and that an increase in distressed neighborhoods may reverse years of urban renewal projects.

Share

COinS
 

To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.