But intervening at Step 1 would arguably cut more directly to the GRASSROOTS of the problem, while AVOIDING that whole bugaboo of "socialism" raised by direct, top-end, government buy-outs and bail-outs.
"Step 1," FYI:
1. The bursting of the housing bubble has led to a surge in defaults and
foreclosures, which in turn has led to a plunge in the prices of mortgage-backed
securities — assets whose value ultimately comes from mortgage payments.
It makes sense, and calling it what it is, it's much more... capitalist than previous ideas. I like it...
Kudos to GR.