Mike, I agree.
I hate regulation of any sort, but there is a point where a system needs to be put in place to prevent people from making a mess.
Rather than offer a bailout to companies (what is the term for corporate socialism?
) Congress should re-regulate the industry. Nothing painfully oppressive, as that can curtail growth and profits. But I think that banks should be required to hold the loans they sell for at least a few years.
The other thing we might do that some others have talked about is offer the current fed rate for loans. That would allow people to refinance and not default on their loans, as well as give businesses access to cheap cash. This is not my plan, and I do not know if there would even be enough loot to cover what everyone would want (provided that the loans would get approved).
Anybody got any better ideas? I am not en economist, and while I think I understand the problem better than the average guy on the street, that is probably still not saying much.
Steve