Challenge this one: Have all the banks holding risky CDOs, SIVs, and home equity loan assets find the end users of this debt and incentivize them to pay off their debts by offering a 10-30% bonus while somehow finding a way to not allow these people to participate by merely moving debt from one heloc or mortgage to another [or to personal credit]. Even a siphoning of $$$ from personal savings to pay off debts would result in decreased reserve requirements for banks, even if that meant equal net holdings. If etrade is justifying selling debt assets at 27c on the dollar, offering a 30% bonus for early payoff and reduction of high risk debt holders is a win win. this way, banks get 70c on the dollar for low quality debt assets and 'subprime' schlocks make an instant 30% profit on their DEBT!! More specifically making a high risk debt reduction plan that is to be funded only by paycheck deduction and/or early 401K/stock withdrawals might isolate some of the 'reserve shuffling loopholes' that are inherent flaws here. If I was strapped, I'd commit to pay off my debts in an accelerated pace for 1-2 yrs and get free money out of nowhere. this wreaks of bailout, but how is allowing allowing hedge funds to buy up depressed assets possibly below market value any more beneficial?