Our economy isn't going to recover until the housing market finds its footing.

Too-easy credit and millions of bad loans made during the U.S. housing bubble paved the way for the financial calamity and Great Recession that followed. Today, by contrast, credit is too tight. Mortgage loans are particularly hard to get, creating a problem for the housing market and the broader economy.

The key to house prices is the share of foreclosure or short sales in the total housing market. When that share rises, house prices will fall, because distressed properties sell for significantly less - currently around 25 percent below non-distressed houses.

I'm not a housing market expert, and I don't want to pretend to be one.

Once the housing market begins to recover, I would phase out the mortgage tax deduction.

The housing market will get worse before it gets better.