Lets assume some sort of intervention is the most politically viable option. Lets assume that because people who are really hurting tend to un-elect those who would make such decisions.

Lets assume some of the government intervention has to be implemented locally. Lets assume that part would be required since real estate markets have a large local component.

Considering that politics works on some of the same supply and demand logic as everything else, it is likely that an innovative politician will exploit this whether or not it is Aguirre.

A better question is what would be a less irritating or offensive relief measure look like?

Here’s my version:
Require any bank with loans on property in the city limits to cooperate with short sales (in a timely manner) if the situation met a certain set of criteria.

It would just mean a modest change to their SOP and would likely create minor changes in the inventory. What it would mean (that would be good) is that fewer agents would blacklist shortsales.
Maybe it would make competition more robust than it is now.

This is just an idea. I would appreciate feedback (including from those who disagree).

Does anybody have a better idea that Mr. Mike?

Not being rhetorical. Really. Does anybody have a more desirable version of intervention?