I wish I had confidence that Obama's economic folks are reading the right solutions
that are being put forward. My concern is that the economy will stay bad until there
is liquidity in the housing market.
Most of the proposals I see to address that try to help people keep prices at the last
sale value which is artificially inflating prices over the current market clearing
amount. The Economist had an article on this:
http://www.economist.com/finance/displaystory.cfm?story_id=12470547
which cites Luigi Zingales - Plan B paper.
http://faculty.chicagogsb.edu/luigi.zingales/research/PSpapers/plan_b.pdf
It not only has a proposal based on things that have been done before, to avoid foreclosures
while lowering house prices to the market rate, but also addresses the connectivity risk
between banks and other financial institutions.
Anyone interested in thinking carefully about future economic policy should read this paper.
Also I would think that a Slashdot crowd would like Obama's team to read 'The Gridlock
Economy' which addresses among other things the significant negative economic affect of
our intellectual property system - an issue near and dear to many slashdot readers.
The only thing cheaper than hardware is talk.