So far, rescue packages have been focused on the banking system, Middlebury College Economics Professor David Colander says it’s time to start thinking about homeowners. He suggests a Trickle-Up Plan to distribute to taxpayers vouchers that could be used to buy homes in foreclosure or help homeowners stave off foreclosure, but also could be sold on a secondary market. The following is his plan:

Now that the easy part — temporarily propping up the banking system — is done, it’s time to start thinking about the hard part — how to save millions of Americans from losing their homes in a way that will be politically acceptable but will also stop the economy from falling into a severe recession.

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