Quote:
Originally Posted by ajmccarrell
You are looking at it ceteris paribus. If the banks fail, the prices will fall to the point where regular joes can buy a house again. Basic supply and demand here. I'm not saying that some eggs won't be broken.
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I agree prices will fall. But and again, who is going to loan them the money to buy the house if all the baks failed and govt. can no longer help out because it is too busy trying to figure out how it is going to pay the FDIC bill for the failed banks?
The answer is it is cheaper for the govt. and the American people to stop the failing of the banking system by extending lifelines and brokering deals like the one Bear Stearns got.