Declining housing prices.

Editor,

Re "But Will It Work?" (9/20/2008):

The problem is not declining housing prices. It is hyper-inflated housing prices, which are a consequence of the ubiquitous and easy money that was around at the height of the sub-prime orgy.

It is necessary for housing prices to bottom. Preventing that will only prolong the pain.

Home buyers are defaulting on mortgages that cost more than their houses, but stabilizing housing prices at inflated values so financial gambling casinos can mitigate their losses will merely kick the can of financial collapse down the road.

The Treasury should buy those inflated mortgages for dimes on the dollar and renegotiate each and every one to a price the debtor can afford to pay. This will stabilize home prices where they belong, at deflated, realistic numbers that reflect debtors' actual ability to pay.