Land banks?

[Anonymous_IHB]

<p>Task force looks for way to keep ownership local</p>

<p><a href="http://www.signonsandiego.com/uniontrib/20080217/news_1n17landbank.html">http://www.signonsandiego.com/uniontrib/20080217/news_1n17landbank.html</a></p>

 

[IrvineRenter_IHB]

I fail to see what they are trying to accomplish. If the prices were low enough, people would buy these empty properties, and the neighborhoods would be revived. A program like this one seems to be aimed at keeping property values artificially high and keeping people who overpaid in their (the banks) homes. What public good is served by this? Why is this necessary? Keeping prices artificially high excludes first-time buyers and just prolongs the agony of the market decline. Affordability will return. It is only a matter of how long and painful the journey is.