Lee Terry: “What we are going to do is spend $300 billion to try and get us to right size that by bailing these folks out. That's…”

“What we are going to do is spend $300 billion to try and get us to right size that by bailing these folks out. That's just going to prolong the problem according to the economists. Two points there: If that is all that we are really going to do here, we are not going to turn the tide of the devaluation of our homes. The only way to do that is to increase demand overall, which increasing your tax credit will do, not the phantom one that is here. The other way is when you look at the market and the availability of credit, especially for lower income people, I think we are doing the right thing here by increasing the cap or the limit on credits for low- income housing. But there is also market-available tools that are out there. I have had people come to my office and present these market, nongovernment bailout programs, not programs but options, where they use a 501(c)(3) entity where you can put the life insurance in and cover the costs, reduce the house, and I thank you for the opportunity.”