Didnt say it was the fix, just that it is my guess at one of the first steps towards at least stemming the foreclosure side of this huge issue. Nothing to date has worked and it is estimated that 1 in 4 homeowners will have negative equity by the end of March 09...and will get worse than that if nothing is done quickly.

The programs implemented by HUD/Fannie/Freddie have not worked to date. The only program that is getting rave reviews is what the FDIC has done with IndyMac customers which is exactly what I have described above and I believe Wells and Chase announced similar programs within the past week or so.

What will get people spending again? Without job/wage growth, stock gains, home equity gains and a lending environment that is just as tough today as it was easy 2 years ago, thats a damn good question.