In "More On The Banking System" I detailed Freddie's exposure to just the self-identified ALT-A and subprime paper and showed how it exceeds their available capital. Freddie also has a huge amount of "Fast and Easy" exposure they are calling "prime" but it really is not; this is a ticking nuclear financial device. If you don't get it off their balance sheets it will detonate with disastrous results, and anyone in Washington who voted for their "modernization" without fixing this will get tagged for it.

The Republicans must take the public position that home prices on average must contract to sustainable values, which means no more than 3x incomes on an average basis. Yes, some homes will sell for more, and some for less. The easiest and soundest way to accomplish this is to push for a Federal Law that bars any mortgage written with less than 20% down or greater than 36% DTI. Exempting FHA/VA from the down payment limits (but not DTI caps) is appropriate if both of those programs are limited to homes that sell for no more than 75% of the average price. This fulfills the FHA and VA program mandates to provide affordable housing to the lower tier purchaser while not allowing them to be abused by speculators and the more-wealthy.

The Federal Reserve must be pressured to stop the fraud perpetuated by their programs in the banking system. The House and Senate both have the ability to issue subpoenas and force hearings, and you must exercise that power liberally until all of the bad paper is forced out into the open and the losses are taken. Put these bankers under oath and find out exactly what paper is in the TAF, the TSLF and in Bear Stearns and how it has been valued – in public hearings.

The 80% of Americans who did not participate in or benefit from the fraud form the voting block that can win this election - if they can be coalesced.

You can only do that by showing that 80% that you are not only stopping it now but will continue to after November has passed.

Either The Republicans take this approach here and now - before the July 4th Recess - or they will lose in November.

This is the only voting block that is both big enough and that Republicans have a way to coalesce which can change the outcome.

Lest you think I'm some Democrat "hack" trying to throw Republican election chances, here is proof that I am not:

I want to vote Republican in November. Give me a reason to do so, and I will. Fail and I will vote for change, because The Republicans have presided over the worst fleecing of Americans in 225 years. Arguments that "they'll be worse" are not going to work; you have to show us, here and now, that you will in fact stand for "law and order", not just make promises that will be immediately broken after the election is over.

There are millions of Republicans just like me out here, and we're the people you need, not the corporations who have robbed us all.