Even without Christina Romer there, Washington will still be the center of stupidity:
If you want to know why us libertarian types are skeptical of the government's ability to prevent housing market bubbles, well, I give you Exhibit 9,824: the government's new $1000 down housing program.
No, really. The government has apparently decided, in its infinite wisdom, that what the American economy really needs is more homebuyers with no equity.
[. . .]
It's true that this particular program is small--I don't think the economy is going to be brought to its knees by several hundred houses. The important thing, however, is that this is how the government thinks about housing.
Pretty much how the government thinks about everything, isn't it?