We went to our favorite housing market expert, Kirk Nace, and asked his thoughts. He suggested we consider the following questions:
As balances are written down aren't those losses suffered by ALL taxpayers, not just the people who made or took out these loans?
When principal amounts are reduced and loans are "handed off" to the federal government, doesn't that mean tax payers will be even more on the hook?
When people owe less, what will stop them from selling for less?
How will that impact prices?
IF these programs are more easily accessed by those who are behind on mortgage payments, what are we encouraging people to do?
Click on the title above or the link below to review the entire Wall Street Journal article.
http://online.wsj.com/article/SB10001424052748703963704576005990436624546.html?mod=googlenews_wsj
