While we seem to be as far apart as it is possible for presumably intelligent people to be, your sense of economics agrees with mine (except for the parenthetical political dig - McCain has folks tied to this mess, too, and voted for some of the associated legislation, as did most of the Senate).

Your proposal is not far from what the Libertarians are proposing. If I weren't trying to sell a house, I'd be less concerned, but throwing money at the problem won't solve the problem.