As the global economy continues to meltdown, it's rather shocking that policymakers have done so little to address the demand side of the equation.  It is certainly possible that the actions taken by the Treasury and Fed will have some positive impact on the frozen credit markets, but why has there been little or no initiative aimed at the root causes of the worldwide financial malaise?  A massive devaluation of home prices have resulted in a cascade of deleterious economic outcomes, many of which are rooted in the erosion of houshold balance sheets.  A principal question should be, how do we stem the tide of the housing decline and simultaneously improve consumer confidence and liquidity?  At some point soon, greed needs to overcome fear.  With unprecedented amounts of cash on the sidelines and asset and equity valuations at multi-year, if not multi-generational lows, there are any number of prudent, but temporary measures that can be taken to catalyze greed and get that cash off the sidelines.  This is a very appropriate area in which policymakers should focus, assuming of course, that they do it in a way that does not increase the size of government.  This is simply about stimulating already pent up consumer demand.  Tax credits/incentives are one method; lower mortgage rates are another.   There are others.  The bottom line is that the problems with not be put behind us until consumers are stimulted to set fear aside and pursue opportunities that are too good to pass up.