The government should directly purchase housing assets, not real estate bonds. This would include lots and houses under construction.
I don't understand his rationale behind this. Talk about a bureaucratic nightmare! Maybe this guy is in the real estate management business and figures the feral gummint would have to contract out this part of the operation.
An aside: I was in the mortgage business in Houston when the crunch hit there in '83 - '84. It was rumored that Texaco, due to its policy of taking their transferred employees out of their homes so they wouldn't be saddled with trying to maintain two mortgages, at least temporarily, when they moved, had more property under management than any of the largest property management companies in Houston. Can't vouch for the validity, but interesting nonetheless -- to me.
Well purchasing the real estate bonds would make things even worse and would do little to help anyone keep their homes, if that is the true intention behind the bailout.