It is great to see the New York Times finally coming on board as they are recognizing that Obama’s “Making Home Affordable” plan has failed and could even be making the market worse!

The fact is, that one needs to have the full cycle of the market and actually feel the full pain of the downs of the market before the market can correct itself. Therefore, the governmental interference is just prolonging the agony.

As a result, many desperate homeowners have sent payments to banks in efforts to keep their homes from going into foreclosure – an act which some see as wasting money. They could have saved in order to move to cheaper rental residences. Some borrowers have seen their credit hurt while they assume that loan modifications involved no negative reports to the credit reporting agencies.

Some experts for the program have impeded economic recovery by delaying a wrenching yet purifying process through which borrowers give up homes and mortgages that they cannot afford and the banks have to cope with their greedy bets on real estate, enabling money to flow more freely through the financial market.

Not allowing the market to fully adjust could prove to be a disaster for the economy by falsely holding up real estate prices, falsely holding families in homes that they could not afford (which was the initial problem to begin with).