Bad news here. This should remind people that we can’t just stand idly by in the face of the credit crisis. For a while now, we’ve been having job losses in the construction sector and in communities that are especially hard-hit by the housing bust. At the same time, there’s job growth in export industries and in import-competing manufacturing. But for new jobs to be added at a rate that’s fast enough to make up for the jobs that are being lost, people whose businesses are in a position to expand need to be able to get loans.
At the same time, we can’t just stop with a credit market intervention — at this point we’ve slipped far enough that we’re going to need to do more to try to stabilize the housing market and offer a real jobs program.