[quote=Lyra]Long term, this is still bearish for housing prices (because the principal reduction lottery winners will be able to unload their houses at low prices given their new low cost basis). [/quote]
Really? Are you sure? I have not heard of a principal reduction plan that will not ask for the reduction back when the owner sells the house for a profit. It just effectively turns the “owner” into a renter with a low monthly payment.
