BUT

Just because something may be difficult doesn't mean its impossible.

Furthermore the end result is likely to be significantly more positive for everyone involved than the results derived from the current arsenal of tactics, which at best only are delaying the inevitable and at worse are just grossly ineffective.

Truth be told it all comes down to whether or not people are willing to accept the reality of a situation, instead of attempting to preserve the unsustainable because it's more appetizing to do so. Politicians and bankers shouldn't be promising to keep people in their current house because that's the answer everyone likes, they should promising to TRY and put them into an affordable housing situation while being honest about the fact that it could mean trading down to a cheaper home or renting.

The goal shouldn't be to "keep people in their current homes"  per se,  it should be to put them into an sustainable housing situation, and while this may lead to unpleasant choices/consequences it's a necessary part of stabilizing the overall housing market. While the current architects of the current arsenal of "rescue" tactics have their hearts in the right place, it doesn't change the fact that by delaying the inevitable they're only  prolonging the housing crisis.

The foreclosures, prices declines, etc, are all a necessary part of a market correction that is a requirement for stable markets in the future. It's time for policy makers, politicians, executives, home owners, et al, to accept this fact, and focus on mitigating the impact instead of trying to prevent negative consequences altogether.

Disclosure: at the time of publishing the author didn't own a position in any of the companies mentioned in this article; the ideas expressed are solely the opinions of the author and shouldn't be viewed as financial or investment advice.