Discussed here.

More pennies in the fuse box. In the realm of government economics, you can have corrections where no company goes bankrupt, nobody loses a job, and nobody gets their house foreclosed. Just pretend money isn't real, and the Treasury is infinite. Pretend the laws of economics don't exist.

For God's sake, look at what the "experts" below propose.

The Democrats looked forward to 2008 as the chance to nationalize health care and vastly increase their power. Now events have thrown them an unexpected chance to nationalize the entire housing industry and all connected financial entities, and put ALL of us in "government-subsidized housing." They must think it's like a gift from heaven.

Here's how the folks at Weiss Research see things after examining the Obama plan: "Foreclosures are actually resulting in overpriced homes burdened with too much debt being moved into the hands of new buyers, who are paying drastically reduced prices. They can therefore purchase using a traditional mortgage. ... Delaying and dragging out the downturn by artificially propping up home prices will arguably work against the market healing."

In the same vein, former Bush economic adviser Lawrence Lindsey has suggested an immigration program that would give a provisional green card to anyone who invested at least $10 million in residential property and held it for five years. And bond guru David Goldman of the Inner Workings blog relates that he's been getting inquiries from Chinese investors interested in the U.S. housing market. He also highlights what is easily the worst aspect of the Obama plan, the "cramdown" provision which would allow judges to modify mortgages. "Allowing judges to show generosity to homeowners ... and keep them in their homes makes the core assets of the banking system uncertain. ... Cramdown probably is responsible for the deterioration of subprime AAA’s during the last few days." That's what happens when you toss 1,000 years of contract law out the window in the middle of a global financial crisis.

But the plan falls short of what some experts were pushing for, in both elegance and scope. For instance, Alan Blinder, the former Fed vice chairman, wanted a $400 billion, 21st-century version of the New Deal-era Home Owners' Loan Corp, which bought mortgages from banks and then issued more affordable new loans to struggling homeowners. Then there's Glenn Hubbard and Christopher Mayer of the Columbia Business School who advocated a $338 billion plan to allow all mortgages on primary residences to be refinanced into low, low, low 30-year, fixed-rate mortgages. And independent investment strategist Ed Yardeni and Carl Goldsmith of Delta Asset Management proposed fully nationalizing Fannie Mae and Freddie Mac and then offering a trillion bucks worth of 30-year, fixed-rate mortgages at 4 percent to all qualified borrowers to buy a new or existing home.