o Nays Reject House Bailout Vote : 228-205

This political jockeying over who voted "Yea" or "Nay" on the bailout plan is disgusting and disturbing. Does something have to be done to resolve the crisis at hand? By all means, yes. But doesn't the expectation that a $700,000,000,000 (I just got carpal tunnel syndrome typing all those zeros) bailout package will just fly through the system unopposed epitomize political naivite? Especially considering the time pressure of only one week? And to politicize the crisis does not move the country closer to a solution.

Here's an idea, piece meal into the plan and think it out, don't just do a rush job right before the presidential elections.

Start by raising the FDIC insurance cut off to $1 million instead of $100,000. The greater insurance will make people less nervous about losing their life savings, down payment savings or payroll deposits.

Then focus solely on residential home mortgages. I suggest the government assess each foreclosed property case by case. Buy from the banks all properties that are under water, meaning the value of the house is less than the interest due on the mortgage. Waive the closing costs. Work out a payment plan for people that are able to continue to pay for their house. For those folks deemed insolvent who cannot pay their mortgage, switch their home ownership to a home rental. Have the tenants lease back their homes while they look for an alternative place to live. Then the government can sit on the real estate assets until the market bounces back. Those houses that are left vacant should be torn down similarly to how crops are destroyed to prop up prices. In this manner you address the mortgage crisis at the grass roots level and help out the people in need. The government becomes the biggest home owner in the country but at least it owns real assets, not just junk mortgages.

Tighten up and simplify the lending practices. No more zero down mortgages, insist on 20% down.

There's a blunt lesson in this mess. Home ownership is for people who can afford to pay the mortgage. It's not for everyone. There is nothing wrong with renting until you are ready to buy.