This goes back to the great depression. One of the few things that I actually remember from AP History. The 3 r's relief recovery and reform.
No way does your average family deserve to hand over about $10K to the government for this crap. That relieves the banks, not the average American. Remember, this country is about your average Joe Blow, not John Doe CEO of WaMu that is taking in about 10 digits a year for his 300 foot yacht while employees struggle to get by. The people have already been relived from this issue.
Next part. Recovery. Well, in order to recover the money, we have the FDIC. If you have more than $100K in one asset then there is a problem, and you don't deserve the problem. In fact, I think that $100K should be made about $50K. Know where the money can come from also? Cigarettes and gas. Have 2 points on your license Then you will be paying a 20% higher rate for gas than mr. good driver with 0 points. Have 10 points? Then your price is 100% higher than someone with no points. Tax on Cigarettes should be increased to about $20 a pack. Its not good for your health, and then once you develop emphysema you run to medicaid (NOT MEDICARE!), that we all paid for, so you, by making a bad decision, have cost us all money to keep your sorry *** alive. Just like what you want us to do with the banks.
Time to reform. Stricter standards at closing. No need to make loans available to all, just the responsible. If someone who has a history of being irresponsible then you can save pennies using a FDIC insured bank (we have those for a reason, you know) and then pay cash.
It all comes down to personal responsibility, and our current system is setup to make sure that none is needed. That is what causes this ****. Hold people accountable for what they did and then you will have very few problems.