If the government buys stock in banks, is that not an endorsement of past behavior? I think the government should buy the foreclosed property much like any rich/smart? investor would who had cash. Of course this will still lead to inflation. Inflation is inevitable, just like in post depression Germany when it took a wheel barrow full of cash to buy a loaf of bread. Inflation will also help those that are struggling with their payments but can still manage. Although food will go up (invest in rice and corn(cheap food) futures), the amount(%) paid toward mortgage will go down. That is what is needed and that is what will happen.
