[quote=threadkiller]Can the banks/institutions really absorb all the foreclosures that are coming down the road? I think not! Without some way to extend the pain we are headed for Depression for sure! I myself am ok, it’s my fellow man I’m worried about, which will eventually affect us all. If it makes sense for all parties involved and helps avoid a Depression then I say it’s worth a look.[/quote]
When prices are dropped to the point when demand matches supply, then the market can handle all the foreclosures. The problem most people have is that they want a big chunk of the massive gains in RE prices since 1996 to stick around until they cash in. That’s not a fundamental economic problem, it’s simply one group anxious to use political power to manipulate prices their way.
