Long, Slow Bleed

Senators Shelby and Dodd, along with that financial genius Congressman Barney Frank, have baked a long, slow, painful future for the real estate market. The plan only works if lenders buy in, and considering they are one side of the idiots who helped create this mess, that doesn't seem like the best of plans. Even if they do buy in, the haircut involved will only reset these mortgages to today's levels, approximately. Yet, if and when, prices slip some more, these "homeowners" (that word is a joke, because if you have a mortgage, then you don't own the home, the bank does) will soon be underwater. Underwater by less, but still enough to drown. Look for next year's bailout with a higher price tage and lower house prices.