Querty007, I agree– it looks more like “trying to fly through the storm on a lie and a prayer” hoping to not utterly crash the economy.
It seems to me what we need is a one-time “special” legislation that allows the banks to mark all the assets on their books to market, then take the differenct and “evaporate” it w/o having to show it as a loss on their books… thus staying “solvent”. Pure chicanery, I know, but the alternative looks like a bomb crater where the economy used to be.
This marking-to-market might have the salutary side effect of resulting in houses being valuated at prices that buyers can actually pay with sane mortgages, thereby unlocking the housing market too.
