Great Depression Era Again?

Maybe, not exactly.... But, we're moving toward the 1930's Homeowner's Loan Corporation. Back in the 1930's the Government bought about 20% of the Nation's mortgages, negotiated new terms and staved off many foreclosures. In the process of doing this, many years later, when it wrapped this up, it was profitable (as a whole). Paulson and Bernake's new Main Street focus may do something very similar.

“The government becomes the lender and restructures the loan to make them sustainable,” says the American Enterprise Institute’s Alex Pollock, who was CEO of the Chicago Home Loan Bank for about a decade and recently advised Congress on the housing issue.

The right rhetoric is starting to enter the Government ranks in Washington - but it's immediate action that is needed.