Home Owners' Loan Corporation

Alan Binder, the former Vice Chairman of the Federal Reserve has an interesting article at the New York Times today. Binder proposes the institution of a program similar to one used the last time we had such a serious housing problem. That being the Great Depression. Giving a cursory look at the math, it would likely be significantly cheaper and much more precise than the stimulus package we already said won't work because of the lack of monetary multiplication in the economy.

I would like to see significant and permanent banking reform and transparency should society get involved in a program such as the HOLC. If we have to cumulatively bail out the mess made by banks, they need to be held to account not to be able do create similar messes in the future. And, not just as it pertains to mortgages. Sweeping reform to instill quasi-permanent confidence and transparency. A personal income tax on finance executives who perpetrated this scheme could be used to pay for the HOLC program.

It wouldn't bother me to see lobbyist reform and transparency thrown in for good measure. How about a law that requires all government officials meeting with lobbyists to have meetings taped and then transcribed onto the internet for public access. And, that no lobbyist meetings take place outside of business hours or outside of government offices. I'd even pay for the tape recorder. We'd only need one. If lobbyist meetings were open to public access and transparency, there would likely be very few lobbyist meetings.