If serious measures are enacted it might be to fix ills as serious or worse than hyper- inflation and stabilize/stimulate or in other words rescue the economy.

IF we need the New Deal II, we’ll need the New Deal II, however, since nobody has put that plan together yet and everybody is basically talking about meddling via throwing piles of money at defaulting home borrowers, I’ll stand by my gut instinct the result for housing and economy for a Governmental solution to the foreclosure problem will be the same result as for the I-35 bridge for government solution to a “spontaneous” collapse of another bridge in Cleveland in 1983.

As for 7 million people losing their homes, I say baloney. 7 million homes will be lost, but again, looking at the investment schemes, I see a million Casey Serin’s and Murrieta Investors and not seven million families.

Yes a lot of families will be upside down, but, they’ll have to move on. Any solution attempting to maintain their home price actually is worse for them.

The sound-bite solution be grand-standed by the Pols will do nothing but prop housing prices at their current level. They will do nothing to maintain the economy since the economy is driving by the jobs and spending and debt of a housing market appreciating at 20%/yr. Without it, the mortgage volume will stay at or below it’s current half rate, home sales remain at the 50% down from peak rate and equity spending on restuarants, cars, electronics all dries up even if housing prices are propped up.