If they buy assets at steep discounts and sell these assets then I would imagine it would accelerate the decline in prices not prop it up.
So far I have not heard anything about bailing out upside down homeowners. Paulson just stated that 5 million are in foreclosure but nothing to say he is going to write down their mortgage balances.
Those that do not have the capacity to refinance their mortgage full doc will still probably lose their homes.
