Here is my alternative plan.
Figure out the value of each house in the US at the top of the bubble last year.
FIgure out the value of each house in 1998.
Give 2/3rds of the difference to the current owner of each house in America.
For those that have been foreclosed...that money goes to the bank.
For everyone else who has been hanging on, they get to hang on longer while the value of housing drops to its natural level. The banks don't get to write themselves checks. The Secretary of Treasury does not get to become the financial god of the universe.
Problem solved.
Paris Hilton would be proud.