Here is an ideological “bailout plan” that would probably solve our current financial problems that is far more equitable for the US taxpayer.

Much of the current financial lock-up that is occurring and causing financial institutions to fail and stocks prices to decline is the uncertain value of mortgage based assets that financial companies are carrying.  This uncertainty over the solvency of banks and financial institutions has resulted in a freezing in the system as these organizations have drastically reduced conducting business with one another.  The cause of the uncertainty of asset valuations is the increase in foreclosures and non-performing mortgage based loans.

US Congress, the Fed and Treasury are debating on how to get the financial system unfrozen by applying an incredible burden on the US taxpayer by floating a loan in the amount of $700 billion.

The ideological plan is really quite simple.  Instead of bailing out banks and financial institutions by the government buying their bad assets, why not issue each US household a sum of money (e.g. 10k to 20k) which would be used towards mortgage repayments.  This would drastically reduce the foreclosure rate, add certainty and enhance the value of troubled mortgage based assets of banks, thus improving financial institution solvency and restoring confidence in the system “unfreezing it”.  The loan to US consumers could be paid by taxing exorbitant CEO pay of financial institutions and profits by these organizations.

Crazy you say?  The plan actually more directly addresses the root cause of the problem and is more measurable in cost.  The key to maintain a healthier state of bank lending at that point would be to adhere to well established concepts of risk management and sound accountability for those involved in the process.