[quote=JohnAlt91941]New buyers get nothing from this except probably less inventory to pick from.[/quote]
Exactly. I couldn’t understand how “letting price drop more so that new buyers can spend less on housing” is not the best long-term policy. As we have said here numerous of times, foreclosure is not the problem, foreclosure is the solution.
If the government claimed that foreclosure will hurt the banking system, and thus hurt the real economy. We already solved that with market-to-fantasy accounting for the banks and massive FED/government holding of non-performing asset. Why we still need to save those sorry-ass with renters’ money?
Remember, the government does not create wealth. It merely re-distributes wealth.
