We might be following the Japan 10 year plan

The housing "rescue" plan does little to help the real estate market and in turn does little to resolve the banking issues that were are still facing today.

As mentioned in the previous article we are in the middle of a real estate free fall and the momentum is increasing. The banks are milking the tax payer and mortgagee's for every penny while they sit on their "toxic" assets. Every month that home values sink the banks sink as well. The banks are taking no responsibility for their terrible appraising and forecasting and the Obama administration is dumping the burden on to homeowners. If we would stop bailing out the cry babies at the banks we would resolve the situation within a matter of months. The banks would have no choice but to write down their mortgage losses, foreclose on all delinquent notes and/or begin to be accountable for their poor judgement and begin a principal reductions on the underwater mortgages. Why are they not taking the hit? They are just as responsible for the underwater mortgage as the borrower. It is not about contract law. This is a joke. The contracts should be out the window when the banks go looking for hand out. We could have had the crisis under control months ago by telling the begging banks that we will bail you out but you need to remove all of your top brass and begin to reduce principal based on current values. The field would have been leveled, banks would hold clean assets. There still would be foreclosures but the system would not be so overloaded and top heavy. We would have new CEO's that were not trying to convince all of the world that they didn't drive their companies into the ground. The government could then go back to the drawing board and figure out a way from keeping the new bankers from polluting the waters in the same way.

I am sure the outrage would tremendous. The rants about how unfair it is to the "good" homeowners would be in every headline. Fairness was thrown out the window months ago when we bailed out the likes of Citi, BOA, Wells Fargo, AIG, and oh yeh AIG and Citi and BOA again.