Instead of giving money to the banks that are raising the standards for those that need help.  I have a very simple thought that in the long run would probably cost the government less tax dollars, help those that are in need and put more money back into the economy.  Have the government provide funding or gaurentees in the amount needed to pay off existing high rate and adjustable mortgages in excess of 80% of the appraised value.  If the banks only have to put up the first 80% they could lower thier standards to help those people in trouble with thier mortgages.  If we allow people to payless (lower interest rates) they would have more money to put into the economy.  This would lower the number of foreclosures and housing prices could stablize.  The Government could allow home owners to either payback the amounts in excess of 80% by making monthly payments or by foregoing the tax credit from the interest paid they take on thier income tax.  If  the house sells in the future the proceeds from the sale would payoff the loan and if the house doesn't sell at a high enough price the homeowner will be able to transfer the difference to a new home.  This puts the money back in the economy via the people and helps people directly.