How to contain the credit crisis - Martin Wolf (FT)

Here are 4 do's and 4 do not's of Martin Wolf in the FT. At first glance my plan appears consistent with the relevant do's and the do nots. Note that Wolf suggests to find alternative methods of financing housing including land value taxation (Do not number 3), maybe as an alternative to other property taxes.
Here are four “dos” for a wise government.

  1. sustain the core financial system.
  2. if the government does end up bailing out banks or facilitating mergers, make sure it also contains the risks taxpayers are running.
  3. develop a contingency plan for a systemic bail-out of the financial system.
  4. develop a more credible set of independent institutional arrangements to replace the fiscal rules, which are about to be utterly discredited.

Now here are four “do nots”.

  1. do not pay too much attention to the financial sector’s self-interested bleating.
  2. do not change the monetary framework.
  3. do not bail out mortgage lending via government subsidies.(...) What it can do, instead, is facilitate the development of new systems of finance, such as covered bonds. What it can also do is consider land-value taxation as an alternative to other property taxes.
  4. do not panic.