Good Fiscal Scenario Play

This is what I see in our immediate future:

Here's the scenario. Weak home sales and continuing foreclosures result in climbing real estate inventory. This has two effects. First, it makes new homes even less attractive which further reduces construction jobs. Second, it puts downward pressure on home prices, which makes it harder for struggling homeowners to sell their home to avoid foreclosure and also keeps strategic default rates high, exacerbating the problem. Lower home values encourage Americans to save more and spend less, since their wealth is effectively reduced. The Dow drops and credit markets tighten even further, suffocating private investment just as homeowners bunker down and slash spending. Growth turns negative.

Five different scenarios that all end in"Growth turns negative".

Nice. But avoidable maybe. We have to do it right and get lucky. The consumer side of the engine only has one stimulus untried and that's tax cuts. And it's probably too late for that. Even if you talk rolling back entitlement programs including pensions (that's me and you, Greybeard - even we're on the table if this gets done). But let's rationalize the tax system first. I hear good things about the Fair Tax, but only if the legislation is no longer than 2 pages. And inheritance tax is only on appraised estates of >$10,000,000 in value. Never happen..... Unicorn farts for libertarians....