“500,000 more homeowners choose that route”
There are over 8.4 million homes already foreclosed. Making that 8.9 million is silly.
I don't know about that.
Looking at the current condition of the banking system, we have had to spend trillions in bailouts, "stimulus", and "quantitative easing" to prop up the system. Yet, there have been record numbers of failed banks.
Banks have made record profits, largely through borrowing money from the Fed virtually interest free and buying Treasuries for a guaranteed profit.
Yet they cannot clear their books of bad loans, and lending is the normal source of profits for them.
It is as if they have taken a three year journey and find themselves standing at the edge of a cliff.
Lerner say that if they were nudged, it might result in disaster.