Roubini: More Than $1 Trillion Needed to Solve Housing Crisis

Does this mean the tax payer will need to spend even more to 'fix' this problem?

Housing market is a mess now

How did this idiot become a professor? The flaws in his reasoning are abunant. Housing prices rose over 35% in three years. Roubini's analysis assumes every home was purchased in the last three years and is underwater. You can't fix stupid. Get out of the ivory tower of academics and into the real world.

Whoever made money out of this crisis illegitimately must pay for it.

Yes, the honest and responsible taxpayer will get screwed yet again.

Let's just go pull all of our money out of the bank now, just to be sure!!

Roubini' is dead on. He has been dead on for the last 10 years.

I suspect that just about every US bank has a significant amount of GSE securities in its securities portfolio, relative to its capital. A default by Fannie Mae or Freddie Mac would bring chaos to the US banking system and the FDIC would be left to pick up the pieces. I don't think Congress wants that. Too bad that so many politicians thought that home ownership was good for just about everyone, even people with low incomes who obviously could not afford to buy in many areas of the country.

timpa, you can't fix stupid? You can't even spell abundant right...? Vonayak, who made money off this? The economy caused this and the lenders who "made all this money" are somehow going out of business.

A default by the GSE's would also cost foreign investors a tremendous amount of money and they would probably stop buying US Treasury bonds as a protest. You may not like the idea of a GSE bailout, but the alternatives appear to be much worse.

The fellows obviously a Communist, I'd rather see another Great Depression than give in to Marxist/Stalinist philosopy; Dems need to get the heck out of Washington before this country vanishes

timpa, You also assumed those who bought years ago didn't leveraged to the hilt to buy more homes the last 3 years or to pay off debts. Personally, I know of a few who bought 8-10 years ago found themselves in negative equity right now.

The ripoff of America continues. Has anyone noticed that all these so called experts came from Goldman Sachs and that they along with the Bush-Cheney Oil Barons will come out of this worth Billions more than when they took office 8 years ago.

There is a flaw. Back in 1979 when the Shah was in power it cost 25 cents to talk on a cell phone for 90 seconds. Now that same 25 cents buys three sticks of gum. I say bring the Shah back into power and we can begin to address why there has been such huge disintermediation of the global currency markets. Something has to change and drilling for natural gas from shale is not going to drive auto prices lower.

Writing a blank check to Freddie and Fannie is hardly an orderly way to solve the problem. Why would they not do more of the same, knowing the taxpayers will cover any and all losses? They should be put under federal control and liquidated in an orderly fashion like any other failing bank.

Let's not fool ourselves. The Fed just goes into war spending like a wild man and then lets all these greedy banking and lending fools rip the American people off. Now they will print more money and shore up the mess they let happen in the first place. Business as usual. One of these days the Ivory tower of Ignorant Academia and foolhardy fiscal policy will come crashing down like a Roman Empire house of cards. I will NOT CRY! Congress and Senate PULL YOUR HEADS OUT OF YOUR GREEDY #%$#$es!

Let's not fool ourselves. The Fed just goes into war spending like a wild man and then lets all these greedy banking and lending fools (and many dummies who were holding excessive loans) rip the American people off. Now they will print more money and shore up the mess they let happen in the first place. Business as usual. One of these days the Ivory tower of Ignorant Academia and foolhardy fiscal policy will come crashing down like a Roman Empire house of cards. I will NOT CRY! Congress and Senate PULL YOUR HEADS OUT OF YOUR GREEDY #%$#$es!

Let's not fool ourselves. The Fed just goes into war spending like a wild man and then lets all these greedy banking and lending fools (and many dummies who were holding excessive loans) rip the American people off. Now they will print more money and shore up the mess they let happen in the first place. Business as usual. One of these days the Ivory tower of Ignorant Academia and foolhardy fiscal policy will come crashing down like a Roman Empire house of cards. I will NOT CRY! Congress and Senate PULL YOUR HEADS OUT OF YOUR GREEDY #%$#$es!

1st the majority of ppl don't know how to budget there money which means they don't deserve to own a house...Thanks Bill Clinton for changing the banking laws... 2nd this is why everyone can't be rich and dumb ppl don't deserve nice things 3rd why in the world is the goverment i.e. sally mae, fanny mac, securing loans for ppl with bad credit for up to 750,000 dollars??? The goverment shuldn't be competing with the banking industry to begin wit 4th let there houses default, rich ppl buy them and rent them back to them

Yes, you are accountable for the debt of the richest, & you'll pay off every cent of it even if it means slavery & cannibalism.