They want to keep home prices from falling, and keep people out of foreclosure. They are pathetically ignorant as to the true cause of our economic woes.
Falling prices are NOT the cause, they are the EFFECT of people in homes they can’t afford.
Take the most qualified of that 40% and sell them the foreclosed homes at discounts. Let the lenders take losses on selling to people who CAN afford, not bailing out liars and speculators.
That will teach banks not to lend to people they shouldn’t, teach people not to buy more than they can afford, and reward rather than punish those who save money, not those who lied about how much they make.
