Recommended Afternoon Economics Reading

Reuters—Obama to announce actions on housing:

President Barack Obama this week will announce a series of actions to help the economy that will not require congressional approval, including an initiative to make it easier for homeowners to refinance their mortgages, according to a White House official.

...The first of the initiatives will be unveiled during Obama's three-day trip to western states beginning Monday.

He will discuss the changes in mortgage rules at a stop in Nevada, which has one of the hardest-hit housing markets in the country.

The Obama administration has been working with the Federal Housing Finance Agency, the regulator for Fannie Mae and Freddie Mac, to find ways to make it easier for borrowers to switch to cheaper loans even if they have little to no equity in their homes.

The FHFA intends to loosen the terms of the two-year-old Home Affordable Refinance Program (HARP), which helps borrowers who have been making mortgage payments on time but who have not been able to refinance as their home values have dropped.

Obama will also unveil a student loan initiative until Wednesday, details about which I will post when they become available. For now, more on the housing stuff...

Washington Post—Obama's efforts to aid homeowners, boost housing market fall far short of goals: "President Obama pledged at the beginning of his term to boost the nation's crippled housing market and help as many as 9 million homeowners avoid losing their homes to foreclosure. Nearly three years later, it hasn't worked out. ... The Obama effort fell short in part because the president and his senior advisers, after a series of internal debates, decided against more dramatic actions to help homeowners, worried that they would pose risks for taxpayers and the economy, according to numerous current and former officials."

That WaPo piece is long, but it's really, really worth your time to read in its entirety. Also see Digby for her typically excellent commentary.