I think HOPE will work to calm down the market, and temper a large risk to the economy. The home buyers will get a longer period to build their income and credit, and be able to afford a conventional loan later.

The market response has been paranoid, so these silly, irresponsible loans will not find any funding in the future. We will return to a rational, safe mortgaging system.

Sure, there are some violations of pure capitalism. But the lessons were learned, and all parties will be better off under this settlement than foreclosure. And the whole system will be smarter and more conservative in the future.

Those of us who chose not to buy - chose not to overextend ourselves - now get penalized three times instead of once. First for not participating in the price appreciation, again for spending our resources propping up other people's mortgages, and a third time for not having the chance to purchase property at fair market value.

"Congrats on making a dumb choice, then handling it irresponsibly. Keep it up, and do it on my dime (even though I can't)."

Imagine propping up the NASDAQ bull market in 2000. Such support would have penalized the many to help the few, not held up over time, and prevented the natural course that eventually led back to a thriving market.

Great article. I hope you gain an ever widening audience, Nicole! We need writers like you to battle the economical illiteracy that will kill this country.

A brilliant analysis of the frightening economic disaster awaiting our nation. While there is blame all around, borrowers AND lenders, it casts a pall on the integrity of our lending institutions. The old saying "Banks are not your friend" has never been truer. This is the beginning of a financial diaster the likes of which this nation has never seen. "Start the printing presses, farewell the dollar." Buy gold!