Are you there Obama? It's me Sandy.

I have to apologize to Andy for being in blogging hibernation this winter. Now that 2009 is here and on track I can get down to the serious business of refuting Andy's crazy idea... wait a minute. I agree with his first two posts. I think gays should be allowed civil unions and I definitely feel less strongly about gay marriage in the religious sense, but mostly because most religions (the biggies anyway) don't condone their gayness anyway. As long as they are considered next of kin by law, I think that would cover most issues.

I have also been going over in my head why this bailout money was given to the banks and corporations and not directly to the people a la FEMA cards. Here is a very rough sketch of how it might work:

1. You set up the Federal Emergency Homeower Assistance program (FEHA).
2. Establish some guidelines for qualifications eg, you are in Foreclosure, you have lost your job, or lost your spouse in Iraq etc
3. Homeowners apply for a fixed rate loan at 5%, almost like a refinance situation and are approved or denied. Then government cuts the bank a check, takes over your mortgage at the current market value of your home.
4. You pay your mortgage back to the government over the next 15-40 years.

I'm sure there are some major gaping holes in this plan, but I think it solves two issues: the banks get paid, and the people who are in trouble with adjustable rate mortgages are given a more reasonable option of paying market value at a fixed rate. Additionally, the homeowner is required to complete a course on financial responsibility, or case workers can be assigned to assist them in staying on track.

Assuming all goes well and the homeowner pays the government back at that interest rate, we'd double the money initially lent to the individual. If even given these circumstances, the homeowner defaults on the government loan, they would then act as any bank would - foreclose and resell.

I still think with this model there is accountibility for the funds and it would have cost less than just handing over $350b to banks.