The only solution is for the government to buy all of the mortgages that they don't already own, mark the principle down in a uniform way based on regional and temporal considerations, and then sell them back to the banks.

This is how this would work:

The government already owns the majority of the mortgages, so they just have to buy the rest of them on the open market.  Then they develop a formula for determining how much to reduce the principle of mortgages.  The idea is to lower the mortgages to approximate what people would owe if home price had not been inflated by all of this garbage that Wall Street was doing.

The formula would include considerations such as time of origination and location.  The key is that the regions that had the more inflated prices would get more relief.  Obviously this would have to be studied very closely in order to come up with the formula that was most equitable.

The key to this plan is that it rids us of the moral hazard that threatens to completely ruin the housing market, which is that right now, people who cannot afford to pay get help and people who can don't get any.  If everyone got the same type of relief, most everyone would be able to stay in their homes, and people would not be compelled to not pay their mortgage.

Your thoughts and/or support are encouraged!

He ruined the country because his basic governing philosophy is that governing is the creation of problems, not the solving of them.