We are facing economic meltdown. They will print an unlimited number of bills or create the ultimate fund to TRY and stop the tsunami. In the beginning they tried using an umbrella. It didn’t work.
The govts biggest fear right now is a collapse of housing prices. If thousands upon thousands walk away, they cannot burn the houses down, they must be sold, but the only buyers will be at greatly reduced prices causing a panic in the economy.
They will do ANYTHING to figure out how to keep John/Jane Q Public wanting to pay their inflated mortgage. Even at 0% interest, the myth is kept alive by the high principal balance.
What is best for the public is not what is best for the govt.
People walking away and buying a similar house in the future for 50% less than they owe today is good for the public.
What the govt wants is to keep people from losing their homes so the system doesn’t collapse and staying in debt.
If the homes were “worth” more than people owed, the govt wouldn’t be so concerned.
$100bn is a good number to start. They will create more $ if they need to.
The situation is giving a new definition to the word CRISIS.
