Fair and Effective Bail Out

The people at the Center For American Progress, who I presume have more economic knowledge than I do, offer up their own plan for the bail out. I feel on some level my haphazardly thrown together idea isn't completely different than theirs. Two big differences I see.

First, I think their plan would inject money into the market faster than mine. But that might be contingent on the second difference and here is where my financial and economic knowledge gets really weak. Every one's mortgage is "broken up" and dispersed across multiple securities. The CAP plan has the financial industry reassemble those mortgages before the gov't buys them up.

As I understand it this breaking up of mortgages and disbursement into multiple securities is one of the big problems in the market. No one really knows what those securities are worth because they don't know what mortgages make them up. By recombining the mortgages I can see the plan putting more transparency into the market and people would have an easier time of valuing the securities out there.