There is no painless, quick fix for this catastrophe. The more the government tries to paper over the housing crisis, and prevent housing from seeking its own equilibrium value in real terms, the longer it will take to find out what is true market pricing and then be able to grow from there.
Zuckerman is right about pain being unavoidable, because either the American people suffer, or Wall Street suffers. Wall Street's whorehouse known as Congress chose to let the people suffer. But his insinuation that there is no solution for the American people (other than to let the prices collapse, apparently with no protections for mortgage-holders) is wrong, and probably intended to steer us away from LaRouche's HPBA, which would have prevented the disaster and which would prevent it from getting any worse if implemented now.