Ron, I would argue that you can't stabilise the mortgage market without stabilising the real estate market and you can't do that until real estate prices come back into line with historical norms compared to wages and rents. If falling assets prices are the problem, then the solution is rising nominal rents and incomes. A good old fashioned wage price spiral is what is required. They (I mean all the western economies, but particularly the US and the UK) have to devalue their currencies and import some inflation into the system.

Ultimately, a currency is only as strong as the real economy of the nation which backs it and the US and the UK are hollowed out, debt ridden shells whose national stocks of wealth need to be written down substantially in value. We've been free loading on the backs of Third World workers for too long.