I haven't watched the video yet but I've been telling people the same thing for the last week. All the plan is going to do is move money around. It will do nothing to help stabilize the market or increase property values.
If the government finances 1 trillion in property, what are they going to do with it? Nothing, they don't want it. They are trying to round up private businesses to buy it. What type of business will buy property the public and the government does not want? The only type is one that will take a huge discount on it, a big enough discount that they know they will be able to make a profit on it even if they have to carry the empty property for a year or two.
So now the situation is we have properties that lost 25% to 50% of the value, is financed for the full amount, and no one wants to touch it. No company is going to buy a "toxic asset" at it's current market value, they are going to want at least 25% to 50% off the market value to take a chance on it. The private companies buying the toxic assets will not want to sit on them for a year so they will try to sell them as quick as possible, meaning they will be selling them for a deep discount below market value. The bottom line is the value of the house that has already lost 25% to 50% due to the housing bubble, just lost another 25% to 50% because of the government "saving" anyone. All the surrounding properties will also lost value. The original banks will lose money, unless the government is going to pay them pre-popped bubble prices for the house, which I don't see happening.
All that is happening is delaying the recession by throwing money wildly into the middle of it.