Fabulous news in the housing bill!

Hi, Michael

From what I see, many view this bill as a "half full or half empty' kind of thing. I think any action that calms the market and the consumer is a good thing, and that incenting home ownership with tax credits is a great thing.

It's impossible to please everyone, but as I understand it, this bill should have a very beneficial effect on reducing foreclosures, as banks now have a solution that will protect them frm having to write down the non-performing loan to zero by switching it into their new gov't backed program. They'll take a loss, but not the fairlyland loss that the banking regulators require on all non- performing loans: to write the loan to zero on the books.

Banks are so highly leveraged that writing these loans to zero in any amount threatens their regulatory net worth and stability. I view the bill as a good thing.