History Repeating Itself with the Economy

Despite the federal government's injection of 700 billion, the economy still continues to fall. This is also precisely what happened in 1929 when first Richard Whitney, and later William C. Durant and the Rockefellers, attempted to inject more money into the system to bolster confidence and stop the fall. In my opinion, the government should buy mortgages directly from the PEOPLE, not the banks. Many people facing foreclosure would like to simply sell their home at appraisal value or less to get out and purchase a cheaper home they can afford. Many people have homes they desperately need to sell so they can purchase another home in another area due to relocation. During the Great Depression, the government had to enact policies to stop overproduction in farming. With the culprit in this downturn the housing overproduction, local, state, and federal government needs to come up with a plan to deal with the oversupply of housing now and a plan to prevent it in the future. To me the glut of subdivisions and strip malls is the equivalent of the stock buying boom of the 1920's. In the 20's people borrowed money for stock that deflated, and now millions of homeowners have borrowed money for homes that have devalued. Buying homes back from struggling homeowners saves the banks and the people from ruin, whereas simply taking toxic subprime mortgages off the bank ledgers still leaves people facing foreclosure of their homes (by the government now rather than the previous private bank owner). The federal government could then use the oversupply of homes purchased for government housing programs through agencies such as HUD or property grants to the states for their own local housing programs. The government still does this for farm products now. That's what commodities are (you know, "government cheese" and the like). It's time to do something like that with houses.