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Why don't the Feds just buy the houses?

Instead of bailing out selected investment banks and insurance companies, and going into a bunch of debt, Nick D'amato has a much simpler (and cheaper!) idea: BUY THE HOUSES. The government should just buy foreclosed homes at the fair market rate.
This is better than a "bailout" because:
1. It solves the problem for 95% of the banks and investment companies instead of just a select few;
2. It stops the sliding house prices;
3. Instead of just DEBT, which carries a negative value - the government would instead have real estate which can be sold at a later date for some positive value. Something positive is better than a bunch of negative.
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