Butothereconomistssay the mathematics is not that simple. DesmondLachman is withthe AmericanEnterpriseInstitute. Henotes that deep budgetcuts in Greecehaveproduced a deep recession.
DesmondLachman, a fellow at the American Enterprise Institute in Washington has another, simpler, solution: Just require mortgage originators to be sufficiently capitalized and to hold at least a portion of the mortgage until maturity.