The government could have just redirected the bailout to the clients, not the institutions in order to stave off systematic destruction. Immediate foreclosures should have been limited to only those who never should have qualified in the first place. Wash the mortgage foreclosure from their record and return to their previously and already poor credit rating instead of making it worse. Anyone during the bubble who eventually couldn't pay should still have been foreclosed on, but credit protected. Then very basic credit requirements and income levels should have been instituted for future loans to consumers.

Then the big banks should have been splintered into piece meal and sold off in the free market in a way that would not have allowed them to be clumped together anytime soon.

During this time, the Treasury could have taken over "the Fed" and finally regulate it and audit it.


Competition would have ran rampant ( good for consumers) and the new splintered banks would more than likely focus on investing into small business.