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How do you stop the foreclosure process? That to me seems like a good start in getting a floor under housing.

Another thing that isn’t being talked about is how do we support economic growth as the solution to our problems? Yes, we are in a recessionary spiral and in the next year we will see some negative GDP numbers. However, what if the government were to do the following:

1) Immediate cut on marginal tax rates

2) Immediate elimination of capital gains taxes for say 2 years? (And no whining when it expires please)

3) Immediate allowance for all investment losses to be deducted in one to two years instead of capping them at $3K per year.

4) Elimination of mark to market standards. Every time someone else writes down their assets that means someone else has to as well. That can mean a good bank loses capital to loan out.

5) Tax breaks for any company that invests in distressed assets. This might be a way to reward risky investing but if a private entitiy is buying then that’s better than Uncle Sam.