Financial meltdown

I am alarmed that the government's main response to our financial mess is to encourage more lending and to shore up what loans already exist. Trying to return to the situation we just came from is not a reasonable option. The correct method of dealing with this mess is to put more money, money not created by lending, into the hands of citizens, and gradually to restrict institutions from lending, by requiring higher reserves, so the underlying cause of the fiasco will not repeat itself. Easy credit is what started this mess. It is as though there is mass denial that there was any thing wrong with this easy credit system. The stimulus package as first proposed, just giving rebate checks to ordinary citizens, was a very reasonable if not very quantitatively signficant response. But since that time the responses by our government and the Fed have been quite idiotic, imo, just a kind of delaying the day of reckoning, the upshot being that the time of suffering and economic uncertainties will be prolonged and that everything will crash harder when it does crash. I predict a time of great suffering for Americans (and much of the rest of the world) as poverty spreads from the stupidity of our leaders in dealing with this economic crisis. Perhaps the suffering will be great enough that it eventually causes people to see that the easy-credit banking system has all along caused poverty and suffering by ensuring with mathematical certainty that the debt people have to banks will always be just a little less than the money deposited there. Perhaps it will mortify people into seeing the truth. But the Great Depression and the Savings and Loan crisis didn't teach people, apparently, so who knows?