I’ve been pondering this question too. The banks are already positioning it as Fraud, fraud, fraud on the part of individual home buyers.
Other than an S&L type bail out of the banks backed by the taxpayers for all the fraudulent loans buyers foisted upon them, I don’t see what the Gov will do to prevent what will be local market conditions. The banks will be a national issue, SoCal’s housing implosion will be SoCal. Texas will keep chugging along. Detroit, Indiana, and Ohio isn’t a housing issue as much as a jobs issues.
In the end, I think experiencing a single asset revaluation is a lot easier on everyone than experiencing a currency revaluation.
