Are you kidding me? Direct involvement similar to the Resolution Trust Corporation. That was just career-building for the cronies who managed that organization. I guess some people would think that is a good idea since they have done so well with social security, health care, watching over the housing industry, and more.
There is at least one major investment banker who plans to drastically reduce the balances on problem loans in their portfolio and offer new terms/loans to the people living in those homes. This is a better idea than having our government figure things out. This succeeds because of more than one thing. First, it saves homes for people previously duped by certain mortgage companies. Second, it brings back some money lost because of write downs. Third, it diminishes the impact of "low ball" home values by avoiding new sales.
The idea of an entity taking over these properties and negotiating a discount with them is a great idea. I think it should be the private sector that does that rather than the government.
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