What I would do

A simple 5 point plan to solve this "crisis" with very little cost to taxpayers.

1. Immediately disband the FHA and any organization that helps "low income" people buy houses. This was the root cause of the problem, people buying homes who should have no business buying homes. Solving a housing crisis means eliminating the cancer of the crisis. No more meddling in the housing sector by the government through subsidies.

2. Eliminate the long term capital gains tax for 3 years. You want to prop up stock markets, make the after tax rate of return higher and people will buy stocks again. At the same time, triple the dividend tax for 3 years. This will essentially force companies to stop paying dividends and instead invest the money back into the company, resulting in more growth.

3. Suspend all gas taxes, both state and federal. You want people to spend more to stimulate the economy, don't send a check. Make the price of gas lower. This will not only give consumers more money, it will also result in lower prices throughout the economy due to lower transportation costs.

4. For 12 months, allow people to file bankruptcy without a negative impact on credit scores. Lots of people right now are hanging on by a thread. They are afraid of the FICO hit, so they are making the ridiculous payment on the house. They will go bankrupt eventually, might as well get that out of the way now. Rip that band aid off in one swoop instead of bit by bit. Then instead of paying $2500 mortgage on a condo they can't afford, these people will pay $1200 rent on an apartment they can afford and have $500 extra to spent in the economy. All this without always being on the verge.

5. Immediately start enforcing a new rule for all government assistance: NO GREEN CARD, NO CHECK. Doesn't matter if you have the saddest sad story that ever was told. And I don't care if you've been here for 18 years and your kid is on the honor roll and about to go to Harvard on a full scholarship right after serving in the Marines. If you're here illegally you don't get any government money. Period.