[Chuckiechan]

That's an interesting argument.

Do we vote for principal and take the pain of economic malaise for years to come, or do we bite the bullet and bail out the mortgage industry?

There is such a thing as mortgage insurance, and plans are calling for increasing the premiums to resolve the bad debt over time - negatively monetize it,if you prefer, into bonds to be surrendered with mortgage insurance payments.

I will say this: Congress made this mess over the last 20 years and lots of middle class and lower people have benefited from it by getting into homes and doing just fine. I'd hate to see that conservative ideal abandoned. It can be saved with higher mortgage insurance premiums. I hope they go there.