If you are wondering why despite all of the measures that the Fed and the Treasury have taken to stimulate the economy and the housing market are not working it is because they are all monetary policies.  And right now, the monetary system is broken.

The perfect example of this is what happened on Monday the 13th where the Treasury was finally put in a position where they needed to buy into equity positions into our banks.  An unprecidented course of action.

None of the other monetary policies were working.  Cutting the discount and the federal funds rate was not having the desired affect.  Pumping billions into the banking system was not getting the results that they wanted to see.  Ever wonder why mortgage rates, despite all of the efforts by the Fed over the past 14 months, have not declined significantly?  And they have been following this policy for the better part of a year, since August of 2007 to be specific.

The economy, banking system, and most importantly the housing market needs a new fiscal policy to bring us off of the course we are currently on.

We need Washington to bring something new to the table to stimulate new demand for real estate and growth in our economy.

I outline my proposal here:  www.HousingStimulusPlan.org