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The Housing Bill: Uncle Sam Is Moving Into the Spare Bedroom

@233593:

And what do you think determines the current market value when there isn't a market? All those models failed to do so. Banks can easily find someone to appraise them at full value of $500k and scam the tax payers money to bail them out.

If banks let houses go into foreclosure, it will lose about half of the loan balance when all said and done. Any loss smaller than that is better. Especially if they can bribe people to appraise houses at higher value.