Jim98

Propping Up Home Prices Will Not Solve the Crisis

I'm not sure why everyone thinks it was only the banks and wall street that caused this crisis. What about realtors, and what about homeowners themselves? How many of them knowingly abused the system by taking out excessively large mortages and equity loans? How many of them are still in denial about the value of their property? House prices still need to go down 25-30% to be approaching fair value. Probably, a good solution would be have houses reappraised, adjust the value of mortgage accordingly, and figure out who will pay the difference. jd.