700 billion with no conditions...I wish I could do that. Listen, I've totally screwed things up and I need a few thousand dollars to bail me out of trouble.  But you can't make any conditions, just write me a blank check and I need it by yesterday.

And then Fannie Mae, Freddie Mac, Lehman Brothers and AIG...all looking for a bailout and getting probed by the FBI if they violated security laws or other crimes. Not only that, but there are 26 total entities being investigated in this mortgage meltdown.

I'm like the Indian with the tear in his eye. I'm looking at this mess and I'm thinking that there are a good number of people trying to get all they can get from this country with no care in the world for who they hurt or what they destroy while they rape and pillage what little we have left. And they are blatantly doing it right in front of our faces. We are watching it as it happens like a magician doing a magic trick. Only this is the way I feel...

It's like someone is looking me straight in the eye and saying I'm going to literally screw you over and there's nothing you can do about it.

But, no use complaining...

If the bailout actually goes FOR what they originally said it would go FOR, it might work. But, the filter down system just seems to always retain too much residue on the way down and what actually gets done is little next to nothing with no justification for what happened to it all.

But, let's do the math. 700 billion dollars would be used to buy mortgages in default and then "flip" them so that banks don't have to deal with real estate issues. They get the money they deserve and move on with their lives. No more headache for them.

So, the government now has the worry. But, they won't be desperate to get rid of the property the way a bank would. A bank might take 75% or 50% of the loan value just to get rid of the headache. The government will wait until someone comes along willing to pay what the government did for that property.

Right off the bat, I can already see the inherent flaws. But, there are so many other factors involved like "liar loans." Those are loans where no proof of income was necessary...huh? Ok, learning a great deal about real estate from the news these days. Ninja loans...no income, no job, (no) assets. Where were these being given away? I would have enjoyed one or two.

Anyway, in a solid plan the government would only deal with people who could actually afford the homes and who could actually show proof that they could afford the homes. Like say, show me the cash.

But other than liar loans, there are a decent amount of families forced to leave their dream homes for other reasons...rising gas prices, rising food prices, rising medical costs...etc. If you have to buy gas to go to work and you have to buy food to feed your family and you have to make sure your family is well, then the dream home gets traded for an apartment. So, are there going to be families who will be able to afford to buy the homes the government is flipping?

First of all, unless I screwed up counting all the zeros, the government would only be able to buy about 5 million homes with that money. Wait a minute! After you buy the homes, who is going to manage the flipping and how much money will that cost? So, it's going to take quite a number of salaries to manage this process. Then, it's going to take quite a few dollars to make it happen.

In the long run, if the government itself manages the loans and makes sure every buyer can actually afford the purchase, then each house that gets flipped would theoretically refuel the program and keep it alive. If the loans are handled with a low APR or even no APR, then more families can manage to buy. No one said there has to be interest on the loans. This is a government bailout for banks who are getting away with "murder." Why not provide a break for the families who can show sufficient proof of income to purchase the homes?

Oh wait a minute, why not make the flip a buy as is? The families are given a huge break on the purchase of the home, they only have to pay what the government paid. In return, they are responsible for the makeup of the home. We would cut down considerably on the amount of capital we would need to run this program, be able to buy more houses and flip them faster, plus hire less people to have to manage the overall process. If they don't have construction work to worry about, each "manager" per se could feasibly manage more houses at one time.

Like I said, it's doable. But, there are so many options to consider to make it work. There are logical options that will make this program fly today. Then, there are government options...you know the ones like, thanks for the money and now we'll form a committee to elect a committee that will join for six months and draft an initial review of a proposed plan.