Everyone agrees that at the bottom of this crisis is the inflated real estate prices.

inflated because of easy credit, no money down and no doc loans. These were made on both residential and commercial real estate.

Many are blaming predatory lenders, greedy investment banks, and air headed home buyers.

But prices could only be inflated because the easy money from the fed was forced into the system to avoid the previous recession.

The only way out of this without having to pay is to inflate the money supply AGAIN (devalue the dollar) in order to catch up with the inflated real estate prices.

At that point everyone will be able to sell thier house but milk is $8.50 / gallon.

The CYA argument from many politicians (Barney) is that the gov't is going to help the poor home owners avoid foreclosure by more easy credit refinancing. This is an insult to the homeowner's intelligence.

If a home will not sell for $300,000 and owner owes $400,000, is it logical that a simple low interest rate will keep the owner from walking away from his house?

No, they've got to inflate the price.

Now the poor really get F**, since they don't own anything that inflates, they just have to come up with the $8.50 for that gallon of milk.

There is nothing free about a free market where the gov't makes the money and makes the rules.

BK