but it isnt what is happening now. i mean,i hesitate to buy a house because i dont want to be trapped underwater for a long time. take away that fear and id buy the house. would an explicit fdic type guarantee cost less than all these other shenanigans? and, like fdic insurance, would its mere existence make it less likely to be necessary. banks don’t fail as often because people don’t pull their money out because if the bank fails they get paid off, so they leave their money there and th ebanks don’t fail.

im not saying this plan to guarantee home prices is a good idea — just that it might be a better more effective idea than the current roundabout scheme.