Mortgage Crisis Solution.

Congress, Treasury, and regulators can’t seem untie the Gordian knot (a maze of interrelated ownership interests in the securities) created by mass securitization. It can’t be done – don’t try! A key reason mortgage backed securities are tanking is the inability of the mortgage servicers to extract the mortgagees from delinquent mortgages, because the loans are underwater. Property values have fallen leaving 40 million home owners stuck in homes they cannot sell because a sale will not pay off the mortgage. These homeowners are simply trapped in their homes, many continue to pay on time, but are treading water; and for how much longer.

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