There's no court that needs to hear this case. The nationwide cramdown should be negotiated directly by the Obama administration, on behalf of all citizens and the remaining banks. Obama's two financial system insiders, Treasury Secretary Timothy Geithner and chief economic advisor Larry Summers, would all of sudden become the good cop - bad cop negotiators shoving the banks in a corner and forcing them to submit to the plan.
Cramdowns were mentioned in the campaign as one of several options to address the needs of homeowners. Obama can resist the idea and those in Congress can ignore the scope of action needed. But the people will bring them back to reality very soon, just as they did on the specific issue of having someone in the cabinet so rich and aloof that he forgets to pay $126,000 in income taxes.
Meeting the urgent need for people to have a home means less social and economic disruption. There would be an immediate stimulus with more money available to spend in the real economy. This stimulus program would put money back in the economy in months not years.
Now is the time.
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Thanks to those who provided feedback on cramdowns and to Susannah Pitt for her very helpful comments.
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