THE BLOG
03/24/2008 11:58 pm ET Updated May 25, 2011

The New Orleans Affordable Housing Crisis Worsens, Thanks to the Credit Crunch

Finally, an aspect of the credit crunch that we can all understand. It's simple: the (non) recession is killing the market for tax credits, so the much-bragged-about GO Zone credits to help rebuild, among other things, affordable housing devastated by the federal flood in New Orleans are selling at a deep discount. Result, according to the Times-Picayune: developers of such housing are having a much more difficult time getting their projects financed, and, though the paper doesn't say it explicitly, that means the evacuees get to stay where they got dumped almost three years ago.

This was supposed to be the market-driven solution to the affordable-housing crisis in New Orleans, and the market has decided that New Orleans (and its diasporated thousands) can wait until the fake valuations have been squeezed out of the exotic mortgage securitization "products." That's what markets do, apparently. What is it that governments do?