The fed is looking to buy back the home mortgages, that are in these failing banking and brokerage institution. Then the fed will package them up and sell them to solvent and local banks who can monitor them.
Some are in foreign hands, but wouldn't the average American home owner want our government to acquire our mortgages and take them out of the international markets?
Obama's answer to this is to "cut $40 billion from federal contractors."
This is not a good idea during a downturn because of the loss of jobs.
As FDR knew, you use the government projects to employ people during down turns, then cut during upturns so the people can find jobs.
John McCain says: "We are in the most serious crisis since World War II."
His "bipartisan oversite committee to be led by Warren Buffett or other respected business leader" proposal I agree with. I also agree with Mc Cain that "the economy is basically strong."
But the finanical system needs to be fixed.