Here is the problem with your theory. The current price of the assets in question is ZERO!
They will not trade at that and everyone knows they are worth more.
This is why the market will not work, and the Fed's plan is to go in and buy up a bunch of it, thereby setting a price and restarting the system.
I should have been clearer. The underlying properties are what need to be priced lower.
And if the price is zero, I'm willing to buy a few of those thinngs at one penny on the dollar.
Heck, I'd take a 1000 of them at a dollar a piece. Someone want to sell me some?