I told you the RodeoSchro plan was gaining traction

After throwing every piece-of-crap plan they had to the wall and hoping something would stick, the Bush administration has finally enacted the tenants of the RodeoSchro plan:

1. Preferred stock purchase in banks to offset losses
2. Guarantee bank-to-bank loans

They have not yet implemented step 3, which is:

3. Don't buy mortgages from banks - let the private sector handle that

But they are getting closer.

The ironic thing is that they didn't listen to RodeoSchro and then implement my plan - their hand was forced by the European banking systems, which (I modestly assume, LOL) DID listen to RodeoSchro. The US either had to implement the RodeoSchro plan too, or see $trillions in deposits leave US banks for European banks.

However, the heavy lifting is just beginning. The underlying problem is the state of the housing and home mortgage industries. Those must be dealt with, and the BEST way to do it is as I have lined out:

* Let the private sector buy the mortgages
* Make any forgiveness of principal and/or past due payments nontaxable
* Give tax breaks for reworking mortgages and keeping homeowners in their homes, rather than foreclosing

I told you there was an opportunity to make $$$$million in this industry. What I didn't know was that I would end up saving America.

Why would the private sector buy mortgages the goverment has given Paulson money to buy?
Let the government buy the worst then buy any that may be left as those should be more solvent (continued payments) and easier to package and sell onto others . . . .