You and I are well aware, when businesses (large and small) fail or claim bankruptcy, they ultimately close down and send their workers home with little or no benefits.  As painful and awful as that would be for all involved, I think the failed organizations in this case need to fail, shut their doors and send their workers home. 

The next step of my plan is to give the banks, credit unions and lending organizations, the very ones who have treaded water in these turbulent times, a chance to come forward.   Give them the chance to acquire these loans (without guarantee), at a fraction of the cost, or even at no cost at all.  I am willing to give some of my tax payer dollars as a bonus, not a subsidy, to those brave companies who take on a little more risk.  Ultimately, the risk should be spread amongst many to lessen the blow. 

These banks would have their roots based in America with the majority of their investors originating on American soil.  It is precisely these organizations who would have the best chance to turn around the current financial crisis.  If they happen to bite off more than they can chew, and cannot keep themselves from utter failure, then they are done, outta here, caput.  Please, bring in the next candidate. 

This way you reward success and not failure.

In addition to letting the surviving banks acquire loans, I propose we give individuals (like you and I) the opportunity to buy the homes involved in the crisis at a price freeze of ten cents on the dollar.  Thus, a $100,000 home could be bought for $10,000.  My husband and I believe we could potentially buy ten houses, and do our part to strengthen the economy.  The previous home owner can stay and rent from us, (with a fair rent to cover mortgage payments, repairs, plus a small income for our efforts.)  However, if the tenants refuse to pay, they will be asked to leave. 

When we buy these homes, the understanding is if your home is already in foreclosure, and you have gone back on your original word to pay the note it is so sorry Charlie, but you no longer qualify to own the home. 

You are now a renter, which is what you should have done in the first place.  If you cannot pay your rent, then we will find someone who can.  Eviction laws should be loosened in these instances, so the new homeowners can take action quickly.

If the government must insist on some kind of bailout money, it should go to the financially responsible new owners to help fix up the homes, increase the property values and reward those who take an interest in improving the neighborhood.  Some of the government funds can be put toward programs to educate the ones losing their ownership status.

I can hear the naysayers out there who tell me to give the original homeowners the first chance to buy back the home at ten cents on the dollar, but this would be a foolish choice.  These people are a considerable credit risk.  They should be encouraged to rent a home or apartment, make their payments on time for at least seven years, to learn fiscal responsibility and to come back with their credit application at that time.  Then we can talk. 

Additionally, because nobody wants to be homeless, the new home buyers and investors should be encouraged to charge fair rent, as long as, the renters are responsible.  The government could even offer the failed home owners a small, one time only stipend to help them get into a low rent apartment.  

If any kind of socialist action needs to be taken, it should be that it is unlawful to start whining about making these people homeless.  Additionally, no one will be allowed to use that idea to gain some type of emotional sympathy to overturn the free market.  That is exactly what got us here in the first place. 

It should be a nationally accepted idea that we did not make them homeless, they made themselves homeless.