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Take the Fed out of the solution. Interest rates are set politically and don't reflect the marketplace. Eliminate Fannie Mae and Freddie Mac or privatize them completely. By what stretch of the imagination should government be deciding any economic goal? Housing? Why should where you live matter to government.

Don't allow private profits and public losses. Don't pass the stimulus bill which simply prints money and increases debt, both of which will harm the RE market and the general economy through inflation and interest rate hikes.

Remove the disincentives from the marketplace like SOX, quarterly reporting (makes the short term more important than the medium/long term), Mark to market rules should be eliminated, etc.

Eliminate tax disincentives like corporate taxes, capital gains taxes, and all double taxation. Make wealth creation easy and everyone gains. Locally, eliminate licensing requirements, minimum/living wage requirements, work requirements on young people and teens.

Split up banks that are allegedly too big to fail. Sell their assets. Bankruptcy works. All this will be painful, but freeing credit markets and getting government out of the way is best and the markets will respond. People will find a way and survive. Eventually, once the dead weight is removed they will thrive.

Roubini advised Argentina, but not Chile. Compare the results. Roubini as an adviser is a menace to America.

Roubini pretends to know and acts smart for the cameras, but his prescriptions are: 1. $700B stimulus package (now trillions) 2. Recapitalization of banks (bad banks) 3. Reducing the debt burden of households (socialize the losses) 4. Ease money supply and restore liquidity (the cause of the original problem)