On Rational Actors, Kevin and Jim start off by discussing President Obama’s proposal to reform the housing market. Kevin notes that by praising renting, Obama is rejecting Bush’s vision of an “ownership society,” which many conservatives came to reject as well. They discuss how the popular view of the financial crisis as a morality tale prevented government action on behalf of irresponsible homeowners. What are the political prospects for reform? Kevin wonders whether predictions that the sequester would tank the economy have been proven false. If we take Republicans’ goal of reducing the long-term deficit seriously, what are politically feasible alternatives to sequestration?