The Hope Now Alliance is a Hail Mary being thrown out by desperate government officials to stem the expected rising tide of home foreclosures nationally.

In a continuing scandal that is sure to send ripples into far-reaching corners of the economy, the subprime mortgage mess has law makers scurrying to bailout these hapless borrowers.

If those borrowers were the only ones to get punished for their assumption of risk, it would be bad enough. Alan Greenspan suggested a few years ago that the only ones who would be hurt were the “last buyers who bought at the top”.

Was he lying or plain stupid? He is certaintly savvy enough to understand the appraisal process. If the house next door to you goes into foreclosure and is sold at a distressed price, say 50 cents on the dollar (what is that really worth by the way?), what happens to the value of your home?

The domino effect affects you and everyone else. We are all connected. Watch out for the road-kill as you drive down your local streets.

This insightful article details the Hope Now Alliance plan and that author, as well as this one, believes that the government should stop meddling into the free markets.