Well said, Perry. I would add that any bailout, however small, would conntribute to keeping house prices inflated and out of the reach of many americans. Bailouts would only benefit lenders and irresponsible borrowers who shouldn’t have bought houses to begin with.

Letting the market run its course will improve housing affordability, especially for responsible citizens who save for a down payment and honor their debts. Bailouts, even if only symbolic, will keep housing overpriced and will encourage irresponsible lending practices. The sooner lenders accept their losses and the sooner foreclosed houses flood the market, the better we’ll be long-term, even if there’s some pain in the short-term.