Lok Sang Ho

56 Car Economic Pile-Up

Your point about moral hazard is well taken. That is why I would proposed a price support program, which will give incentives to people to honor their obligations. I prefer to let those who have missed their payments go the default route, implying foreclosures, or the reselling to the government route(at the appraised market price as of today; see my earlier articles in Seeking Alpha), with any negative balance either as a write off should they declare bankruptcy or as a payable to be taken care over the longer term. I would let the government rent out units to former homeowners at market prices.