The way I see it is; 50% loss SO WHAT!!! I am so underwater now that it would take an eternity to be able to find a buyer to give me what I owe. My mobility is gone, my equity is gone, but being in a fixed rate mortgage my payments cannot go up. As long as i don’t lose my job i can keep my home. My home is not an investment, it is a place for shelter. Too bad if the investors lose money, isn’t that the risk with investing?
I say wind them down and get rid of MERS while your at it.
But that is just it...there is that little implicit guarantee on the good faith and credit of the American taxpayer...