Housing Plan

Well, I have a housing plan, imagine that!. TARP I was used to give banks money because of the "toxic assets" they have on the books and to stimulate lending. It was lending that got us into trouble in the first place, too much lending, and bad lending. I didn't like the TARP I story as it developed cause I came to see that the banks that got TARP I money kept mortgage securities on their books. At the core, these mortgage securities are loans for homes. Hence, they had TARP I money, plus they still had the "notes" on those homes. What a deal! Those toxic assets are mortgages securities, which means that they are appreciable assets. Some day, when home values recover, those toxic assets will be more valuable. It seems like the banking system got the best of all worlds. An infusion of capital from the government to cover losses, but they get to keep the securities and with them, the homes. I propose that local housing authorities purchase forclosed properties and recycle them. This pays off banks, and all those "investors" up the food chain. The toxic assets are off their books. The housing authorities sell, or rent, those properties to families who need them. The purchases are financed with TARP II monies. As the housing authorities begin earn revenue from their real estate assets, they pay back TARP II loans. Its too easy. I call this trickle up economics. What say you?