Sorry to burst your bubble, but CONgress can’t “fix” this. No one can. The bubble was blown too big in too many different directions, and debt service cannot be sustained.
Just suppose this passed - what does that do ? It buys 700 billion worth of bad mortgages, CC debt and/or student loans. Then what ? People are still foreclosed upon because they can’t afford their home, their luxury car, their 5 figure CC debt etc etc.
Debt levels must contract in order to be affordable, ergo credit must contract. The process is extremely painful and the good will be hurt along with the bad.
There is, however, no alternative. Do what they will, the Treasury cannot print trillions and trillions of dollars to pay off bad debt, because they are taking money away from people who already cannot pay their bills. Should they do this and print, then welcome to Weimar. Do you think THAT will be pleasant ?
Let CONgress leave town and do nothing. It won’t change the final outcome and the taxpayers of this nation and all those who depend on the dollar will thank them.
Banks will fail, we’ll need to expand the FDIC balance sheet to handle it, and stop the games and the lying. Make the banks mark to market and restore trust in balance sheets - no more Level 3 accounting games.