Cross posted at my blog, WagTheBlog
Picking up on Devilstower's post at Kos here, it seems there's a really easy solution to this whole mess.
First, we identify the problem. It has three domino-like steps. A) There's a bunch of mortgages that everyone's afraid are going to default. B) As a result of the defaults, property prices go lower, thus causing housing prices to fall. C) As prices fall, people owe more on their homes then they are worth, thus making it harder to sell a house, which leads to either A or B.