Ross Discusses Preventing Second CA Housing Hit
October 7, 2008
SPPD Distinguished Fellow Stan Ross was quoted in The Wall Street Journal about the savings and loan crisis of the 1980s, during which the federal government’s Resolution Trust Corp (RTC) sold off distressed properties at rock-bottom prices. The move has been blamed for further depressing home values, as entire communities were turned over to absentee landlords, the story stated. However, places like Moreno Valley in Riverside County were already suffering from substantially reduced values when the RTC took control, said Ross, chairman of the board of the USC Lusk Center for Real Estate. “It’s so easy to blame the government in these situations,” he added.