The only way to get out of the "death spiral" of the collapsing housing market and stimulate economic growth is for the banks to "forgive" the portions of mortgages where people owe more than their houses are now worth.
Banks should be forced to write down the difference and refinance each mortgage at the lower 30-year-fixed rates now available.
People will be able to stay in their homes, pay the more affordable monthly payments and banks will benefit from having revenue coming in, instead of no income and a large inventory of empty foreclosed homes that no one can afford to buy.
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