Jubillee!

What we need to help fix this financial crisis is a Jubilee. I am not suggesting a full scale Jubilee (if you don't know what a Jubilee is, read the Bible Lev 25), but merely a small, simple Jubilee to repair some of the damage. It would not fix everything, but it would go a long way to restoring confidence. I am suggesting that instead of injecting nearly a trillion dollars into the coffers of banks to push them to lend, we simply remove the damage-dealing toxic assets. Yes, the government should pay off the mortgages (or part of them anyway) of all the people who owe on these toxic-assets.
I think republicans should like this, because it is the same idea as tax-cuts, a direct infusion of funds into the hands of people (smaller loan payment=money in pocket). Although I am sure they will complain about giving to the "undeserving." But that is just an arrogant, elitist argument that I will address at a later time. Democrats... well, I think if it didn't look politically costly to do this, they would do it.
A Jubilee has the same benefits as the previous examples of generous government policy has had. The GI bill returned an average of 7 dollars for every 1 dollar spent. The Marshall Plan after WWII is the reason that Europe has a functioning economy. The New Deal built a large percentage of our current infrastructure, without which we would not have as strong an economy. Generosity not only makes more sense, it makes financial sense. And a Jubilee is the ultimate shot of generosity.