I, for one, think the only way to get the mortgage market back on its feet is to have mortgage insurance written on every loan. It could easily be done by the FHA or even one or several of the major mortgage insurers. This would give the lenders extra "real" protection against a foreclosure and have it paid for by the one who has the most to gain, the borrower. They would be more than willing to pay for it to get the loan, and if it is set up correctly, there will be enough money to insure the lenders against loss in case of foreclosure.
Now what do we do about Wall Street? How about having them face reality as the lenders are being forced to do. No more derivatives that resemble Ponzi schemes. No more bending the rules until they can't be straightened again. Years ago there was the raising of money from member firms when Ira Haupt and Company failed. All the other brokerage houses, as I recall, voluntarily ponied up the dough for the losses to stave off problems with the SEC. Why weren't there reserves set aside or the passing of the hat during the last 5 years to protect the innocent (taxpayers) from the losses resulting from institutions that failed?
As long as it appears we are starting over why not do it right. We don't need a bunch of new rules just a few to replace the tired, bent out of shape, water logged ones that we currently have. We don't need more politicians batting their gums about the barn door being open to wide, we need leaders in the industry proposing plans that will not bury their customers. How about just some plain talk that most people can understand with some integrity backing it up. Of course we should have an overseer from the government just in case someone isn't as straight as his collar.
We still are the greatest land in the world and we can prove it by coming out of this disaster with flying colors while the whole world watches the process. Right in the middle of October would be the best time I can think of to turn a page in the credit crisis and start to rebuild. Today is as good a day as any other so lets get to work and start the rebuilding now!