Truth is, nobody has a clue how to solve the problem.

I do!

Dissolve the GSE’s, let all the FB’s declare bankruptcy and above all…

LET THE BANKS FAIL!

The Fed will probably have to raise interest rates in the process, but personally I think thats a good thing.

There are enough *smart* lenders and borrowers out there to restore sanity to the system. Destroying the dollar to try and bail out the dumbest of speculators strikes me as insane.