Stimulus plans, band-aid solutions for struggling homeowners and short sighted solutions are not going to get our country out of this current housing crisis. We need to give the system an enema. Gross? Maybe, but I can't think of a better analogy for what's happening, and what needs to happen.

Housing Market is in Internal Distress

Diarrhea is normally caused by the bad bacteria overwhelming the good bacteria in your intestinal tract, or by an intestinal inflammation. Doesn’t this describe the real estate industry?

Poor lending practices have created blockages and inflammation.

The only way to get rid of these damaging elements is to flush it out. With an enema. By taking an enema or enema series you rinse most, if not all, of the bad bacteria out of your intestinal tract. Taking an acidophilus enema to replace the good bacteria in your intestines, according to most physicians, is a good common sense idea.

Of course- it's not all smooth sailing. Enemas aren't fun. When your insides feel horrible already, do you really want more discomfort? Well, what if you knew that a bit of discomfort now would make you feel a lot better?

Sometimes, a gross or uncomfortable solution is the only way to restore health and balance to a damaged system.

The problem with most of the stimulus based solutions, and those coming from the real estate industry itself, is that they only put a muzzle on the mouth of the problem. It's a band-aid solution for internal bleeding. We need to get to the route of the problem and flush out the core causes of pain.

The Real Estate Industry is Full of Crap

Frankly, the real estate industry is so full of crap right now that a little diarrhea is the best thing for it. The housing industry needs an enema. It must let things flow out naturally. And there will be some discomfort before it's over. This means that:

- Not every one should own a home. Some folks are going to be faced with the harsh reality that they should not have been homeowners in the first place. They only got in because of enticing loan programs and relaxed underwriting. Bad loans are still lingering in the same places, moratoriums are prolonging the inevitable, loan modifications and rental ideas are keeping folks afloat that should not be afloat.

- Short term programs must go! Too many programs are buying folks time instead of solving the problem. Lowering of interest rates and dropping a payment $300 is usually not enough to help a struggling home owner afford that home in the long run.

- Banks need to pay, and forget interest rates. Why not lower the values on the loan (for those truly in a position to own)? Make the banks take the hit and lower the loan amounts to today's values. Forget the interest rate. A person will surely have a better chance of staying in that home that is realistically at $350,000 instead of $600,000. If the property gets back to that value then there can be a provision of equity share for the bank to make their money later. They surely made it up front on the lending points, fees, and servicing before the borrower went into foreclosure or stopped making payments.

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