Here is an excellent discussion of the many solutions to the housing crisis, all of them disasters except this one.
Ludwig von Mises explained that one government intervention leads to an endless succession of interventions to deal with the effects of the first and subsequent interventions. Ultimately, it comes down to two choices. “Either capitalism or socialism: there exists no middle way,” Mises wrote.
Likewise, there is no middle way to solve the housing crisis. For capitalism to work its magic and set underwater homeowners free, mortgage holders must be allowed to fail.
