[A Sensible Credit Liquidity Remedy]

[dbonds]

This is culled from the best of the other ideas.

1) Buy up foreclosed properties from bank originator loans. This frees up money on the first line of credit making credit available to small businesses and the public quickly. Second phase of this would be originator mortgage company foreclosures, followed by resellers. Do not buy up mortgage backed security properties as these should be made illegal (at least in current form). The government will pay fair current price for the properties which prevents further decline in housing prices.

By buying the properties directly from the front end and not the loans from the back end it ensures the money gets to main street and the wall street fat cats don't take the money and run.

2) Raise the deposit account FDIC insurance to 250k and have the FDIC backed by the Fed loans.

3) Give judges the power to renegotiate distressed loans during bankruptcy hearings.

4) Let the back end loan companies buy insurance from the government.