I don’t see how it can do anything but continue to cause house prices to plummet further.
This bailout trend is only going to cause more people to default. What incentive does anyone now have to pay on houses they can’t afford and/or owe more on than they are worth?
Then, what’s to stop the Government from buying up houses directly?
This is the end of the Amercian way of life, and it’s the end of American Capitalism.