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Foreclosure problem too large to be ignored

Think tank's proposal draws inspiration from Depression-era agency

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The credit crunch and plague of home foreclosures are too large to be ignored, said representatives for a liberal think tank who today detailed plans for a new program that draws from the Depression-era Home Owner's Loan Corp. Laura Tyson, a senior fellow for the Washington, D.C.-based Center for American Progress, said she was "struck by the unanimity of views" during the World Economic Forum last month in Switzerland about the need for action to jump-start the U.S. and global economy and inject liquidity into the marketplace. "The view I heard again and again: Macroeconomic policy of the standard sort is not enough. We need fiscal stimulus," she said, noting that participants at that economic conference expressed worries about the "serious liquidity crisis under way" that has essentially frozen much of the credit market's normal function. "Many liken the situation to a downward spiral." She added, "We need an ... out-of-the-standard-box intervention. Our concern is if we don't do som...