So where does that leave folks who “speculated” that their home would go up in value, so they could take that teaser rate and option arm to afford a place they wouldn’t qualify for? In Claifornia I think there are a lot of these people, and they ARE actually living in the home. How do they get bailed out? I just don’t think there is enough money at the governments disposal to solve this problem.

Pehaps I’m overestimating the number of people out there like this, but I pesonally know a large number of them, so I kind of doubt it.