I saw the news today, Oh My. Tent cities in Sacramento, Seattle, etc. How long is it going to take before we get it?
1. Let the banks and other brain dead financial institutions finally die rather than attempting to keep them on life support.
2. Then nationalize them. Won't cost a cent because they are clearly worthless anyhow, and have been for some time.
3. At this point the government will own all those failed and troubled mortgages, since they will have taken control of the banks that wrote them.
4. All of the above must be done with lightening speed, because it is clearly more important to get those people out of the tents and into real homes as soon as possible. This has to become our new priority. Forget about the "financial system," that's just an abstraction, it's all on paper -- and the paper is burning up faster than we can pour water over it. Real people are in a crisis, people with families, people with children, for crying out loud.
5. Once "we the people" control the mortgages we can tell everyone to go back home. Don't worry about your mortgages, we can, we must, work something out.
6. Offer them the option of refinancing at a significantly lower rate, or simply ceding ownership to the government, which can then rent them their homes at a reduced rate, based on income.
7. Many of these homes were abandoned some time ago and need considerable work. All the better, since the construction market has collapsed and thousands of construction workers in Sacramento, Seattle and many other communities are badly in need of work. Put them to work fixing up the abandoned homes.
Is this rocket science or what? Do you have to have a Ph.D. or a Nobel Prize in economics to get the point? People are homeless. Perfectly good houses are empty, and unwanted. Those with the necessary skills for making those homes livable once more are badly in need of work. It may be too late to save "the economy" but it is certainly not too late to save our families. Get your head out of the clouds Mr. Obama. You were once a community organizer, so I'm sure this can't be that hard for you to understand. It's called a paradigm shift. So shift that paradigm -- the most serious problems, the human problems, are within your power to fix. As for the "free market," forget it. It was never more than a mirage from the beginning.