[durasell]

Good talking to you. Here's another scenario, though. The banks, unwilling to repo the homes, would go into massive "work-out" mode similar to what they did with South American debt. People get to stay in their homes and the banks keep the loans on the books as "performing." Of course, there will be a certain percentage of people who object to paying $500,000 for a piece of property and building only worth $150,000, but I believe that percentage will be relatively small.

[Iris7]

Hmmm.

Could be. Just have to talk the home owners into believing that the price of their houses will go back up right soon. That would be pretty easy, wishful thinking working like it does!

Sort of how the Japanese have done it? Argentina, too, I think? You may be on to something here.