Alexandria is proposing to impose a steep new tax on payday lenders operating within the city, but the industry is vowing to fight the measure.

Should lenders and debt holders be required to renegotiate mortgages for borrowers in default? How much money should they be required to lose in order to do this? How do they provide this relief without punishing the vast majority of mortgagees who are still paying their bills? Paul Leonard and Christopher Thornberg debate. Today, Leonard and Thornberg debate the extent to which the government should facilitate loan modifications to prevent foreclosures. Previously, they discussed the public's reluctance to support federal assistance for troubled borrowers and regulating payday lenders.