And out of the frying pan into the fire. None of what caused this whole charlie foxtrot will have been corrected. And the fox will still be guarding the henhouse. Doing the same thing over and over and expecting different results, talk about the definition of insanity.
No. Each bad loan has a natural progression. The loan is foreclosed. Someone else buys the house. The lender potentially takes a loss but learns to check income and demand a real downpayment before approving a loan. I don't see that as a problem. In any case, I expect congress to get rid of the pressure to make bad loans, so the underlying cause of the problem will be fixed, so long as we don't provide incentives to take those risks.