But a "swooping" up of foreclosed properties at their current market values would bankrupt the banks. This is why they pushed for (and got) a suspension of mark to market, so that the government would grossly overpay for all these worthless assets when they bailed them out. And, besides, these sorts of "investors" are bankrupt too, because they were extremely leveraged.
Of course, however, I'm all for a renegotiation of the capital gains structure. And anyone, incidentally, who has the audacity to make money on their investments under 0bama's watch is going to feel the pinch when he allows the cut to lapse.