what they dont say, page-47

"What's the value of the residential housing market, 4 trillion or something? How do you expect the government to bail out a market of this size? They might try, but if they try too hard, commit too much funding to such an endeavour, they might well end up needing someone to bail them out as well."

So you are then saying that a significant portion of this is going to default? How much do you estimate?
Who says we actually have to commit actual funds - all the gov't has to do is provide a guarantee. Of the guaranteed funds only a smaller portion of them will likely actually default at a later stage.