The stable, leading companies of the US are one after the other failing or being bought out, resulting in massive layoffs. One of the causes being pointed to again and again is the failure of so many mortgages, resulting in securities based on those mortgages to be worthless and expected revenue to be non existent. The situation is so bad in Nevada that more than one in a hundred houses are in some state of foreclosure.
When giant companies are failing the federal government tries to help by extending credit, taking over failing companies, or brokering and financially supporting buyouts. The logic of this is the failure of massive companies will hurt confidence in the economy, and that America's largest most venerable companies are important parts of the economy, supplying jobs and using materials.
Wouldn't helping out mortgage holders and other individuals and families fix this situation closer to its source? Giving people payment holidays or slower repayment could lower foreclosure rates and keep companies that rely on mortgages for income and value from failing.
