If they wanted to mitigate foreclosures, help the banking industry, and provide a simulus package, they could have directed that 700 billion to get all loans current with the caveat of making the banks rewrite loans to conventional terms first. Include making conventional loans current as well to help those who may have lost jobs, etc. (I know this will help deadbeats that will go into foreclosure anyway but they spend money too!).
Voila! Banks get infused with cash, foreclosures are mitigated for at least 90 days and most likely saved because of new conventional loans, and wiping out a huge burden on borrows which will help increase retail spending.
Done deal. Not necessarily fair to responsible home lenders/borrowers. But good for the economy.
Now, if only Washington thought of their electorate as their buddies rather than incompetent bankers just hoping they get to save their multimillion dollar early retirements. Wouldn't that be nice?
