I’m all for the write-downs, but refinancings and guarantees made with taxpayer money are atrociously wrong. These proposals are more of the “war on savers,” “war on the dollar,” and “war on taxpayers” (to parody a expression politicians love to use).

Mortgage write-downs could give the FBs some equity in the properties, and will prevent lenders from having to foreclose countless houses. This is money the banks already lost. Whether writing down a mortgage balance or repossessing a house, the lender is out some money.

Another idea: lenders who write down the balance so that the FBs are not underwater, should be able to share in the equity appreciation (if any) by the time the house is sold.