Ok, so lets do some remedial math.
3,000,000 house debtors
Cost: $50 Billion
Lets assume 1/2 of these houses require principal reduction.
2008-10-29: Treasury, FDIC Crafting Plan to Rework Millions of Mortgages
Officials with the Treasury and the Federal Deposit Insurance Corp. are crafting a plan under which the government would guarantee the mortgages of as many as 3 million homeowners now struggling to avoid foreclosure, according to three sources familiar with the discussions.
Under the program being discussed, the lender would agree to reduce borrowers’ monthly payments, for example by lowering the interest rate or principal of a mortgage loan, based on the homeowner’s ability to pay. These reconfigured loans could help homeowners avert foreclosure.
It would cost between $40 billion and $50 billion, sources said. The program is being discussed as members of Congress are voicing frustrations that the $700 billion rescue program thusfar has been aimed at helping banks, but not homeowners.