I was disappointed -- devastated really -- to see the synopsis of the current stimulus plan has wiped out the homebuyer incentives. This is a shame, because without creating homebuyers again, the rest problems will just continue to float. The proposed credit wasn't enough, but stripping it really hurts the package's ability to really help.

The problem with housing isn't foreclosures, it's the lack of buyers, and the belief that many -- if not most -- homeowners have that their house is worth less than they need it to be worth. This uncertainty bleeds over into all aspects of their lives, their purchases, their behaviors. If we can stabilize home values, we can stabilize the economy. It may not help jobs immediately, but it will eventually. in the homebuilding industry alone, there have been 3 million jobs lost in the past three years.

If the government can create incentives to buy -- be it tax credits, ultra-low interest loans (fixed rate) or both, then home prices can stabilize. Most people aren't as concerned with home much a house cost as how much it will cost them each month. A ultra low interest loan (2-4 percent) protects home values, because it makes the home down the street afordable at a higher price. If you offer refinances at the same rate, you protect home owners who can manage a lower payment, and if they can't, their home becomes more attractive to purchasers.

TPM's front page says that the government is considering buying mortgages. But the mortgages aren't the problem --it's the houses. Buy the houses -- turn them into economic halfway houses. Follow the Habitat for Humanity model and have folks who might not be able to afford a neighborhood have a way to live there through sweat equity. Buy the houses and create an asset -- don't just throw more money to the banks. And then let the Fed start lending money to people. Let them get into the mortgage business. Create a market that allows people to borrow money at a rate that helps them. After all, 3% is better than nothing, and the Fed doesn't need to show a huge profit. Maybe thei forces the other banks down. If you look at what the total payment amounts on a 30-year-fixed mortgage are, you'll see no one is losing money if payments are made. make the loans assumable, so if the family can't afford to stay, they can package their low rate as part of their home. In other words, the administration and treasury need to be working creatively to help get homes moving again. Without doing that, everything is going to continueto stand still.

 In the spirit of full discolusre, this is my industry, so I have inherent biases. But this problem fundementally began with housing, and housing needs to be fixed before the rest of the problems can be manged. And in my opinion, once housing can start to rebound, those other problems become much more manageable.