If a Rescue Bill is unavoidable, help Main Street before Wall Street. If you have to include raising the FDIC deposit limit in this bill, so be it. Find a way to use low US Treasury yields to help homeowners with lower mortgage rates. If I were a concerned Senator I would ask two questions before voting - How is the new Federal Housing Finance Agency valuating $5.4 trillion in Fannie Mae and Freddie Mac mortgage backed securities? When is the Treasury going to use its $200 billion GSE Rescue money? How is HUD going spend $300 billion to help homeowners refinance? With or without this plan there will be a Recession in 2008 / 2009, and The Great Credit Crunch will persist at least through 2011, which will only add on to the $700 billion investment.
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