Why Not Bail Out American Homeowners? (Instead Of Wall Street And Illegals)
[James Fulford] @ 4:56 pm

There’s a suggestion by two econonomists in the Washington Post that instead of bailing out the well-connected on Wall Street, the government should bail out individual American homeowners:

The Trickle-Up Bailout: http://www.washingtonpost.com/wp-dyn/co ... 02316.html

By Jonathan G.S. Koppell and William N. Goetzmann
Wednesday, October 1, 2008; Page A17

The theory underlying the bailout plan stalled in Congress is that rescuing the finance industry will restore market stability and that the benefits will eventually trickle down to average Americans. Thus, solving the subprime mortgage crisis has morphed into a much larger challenge: reassembling the architecture of the financial markets, which seemingly requires giving the Treasury secretary nearly a trillion dollars and extraordinary latitude to pick winners and losers.

There is an easier and more politically palatable fix: Pay off all the delinquent mortgages. [More]
Of course, this would have its own problems, but of course it would provide an opportunity for Congress to limit it to individual American homeowners, and specifically exclude bailing out illegal alien homeowners.

Remember, Fannie, Freddie, and all the banks were explicitly marketing mortgages to illegal aliens, who they said were “good risks.â€