Like most ideas it sounds good until you look deeper into the issue. President Obama wants to “tax” the banks 5-10 million in order to pay for this latest plan. This latest proposal comes after two other very expensive programs, HAMP and HAFA, did not deliver the results that were promised. So why throw more money and more government “help” when this is clearly not the solution.
The reason the housing market is struggling is because of the high unemployment rate. Businesses are not expanding because of the weak economy. The market will stablize if it is allowed to correct itself without any “help” from the government. It will take time but it will take alot more time if the government continues to intervene.