techy

America Needs a Turnaround Plan

i am looking for some answers, i hope some one can analyse below and tell me if it is feasible or not?
---------------------
i have been reading everywhere that now we are heading towards a great depression and not much can be done to make the pain less.

by great depressions, people are predicting that unemployment(official) will shoot up as much as 10-20%.

housing will fall another 30%(panic sales and foreclosures) and will stay there for 4-5 years.

businesses are going to now start laying off preparing for a long recession and consumers are already maxed out and scared hence they will pull back sharply, sending the consumption on a cliff dive.

stock market will go down further 10-20%, destroying wealth and bringing more angst to consumers.

but i feel that if the government wanted it can definitely lessen the pain by doing the below:

1. backstop housing by buying and removing from market all default/foreclosure property(will the current bailout plan do it?)

2. FED interest rate lowered to 0.5%, and mortgage interest lowered to 5%(fannie and freddie are gov entities and can loan money infinitely)
3.more benefits given to home buyers to help housing(how about increasing the short term tax break from 7500 to 25000, which can also be financed from IRA or 401k with no penalty)
3.stimulus checks every three months to help consumer income
4.Faciliate interbank lending by being the middle man(use the trust of the government).
5. Massive infrastructure projects to support job.

in other words...fight deflation and debt with inflation to stave off the sharp pain.

i think these are doable....but will they do it?

people may ask where will they get the money for all this, if i am not wrong government can still borrow at less than 5%, and if FED rate is lowered and we go into recession people will be happy to loan the government at less than 4%.

since price of food and energy is going down, there is no more worry that more money into the system will cause inflation.
right now money is getting destroyed faster than FED can inject money into the system