It's all about the rents, part one million and five
"Nudge theory" explained in one sentence. One mortgage cramdowns:
And the market has failed. There are no major restructuring efforts through the private market. The legal conflicts and perverse incentives of middlemen servicers has devastated the housing market. The “nudge” philosophy of what the government can do – give the middlemen a little bribe to do the right thing – has also failed. A government action was clearly needed, and a government action was not delivered.
Exactly. Succinct statement, complete FAIL.
These "nudge"-style "bank shot policies" (Atrios) that the Obama administrations keeps pushing don't work for anybody but the banksters and the "middlemen" to whom the ruling party diverts a tiny stream of rent (hi, "creative class"!). Quelle surprise.
Obviously, they FAIL for everybody else. And yet, as usual in Versailles, a FAIL for the people is the only thing that wins promotion, power, money, fame, a slot on the teebee, and so on and so forth.