I am laughing about Bill Grosses comment this morning, Treasury please do not let the credit bubble burst! 

Between irresponsible lending, market to market accounting and uncontrolled leveraged investing assets prices are inflated.  The world has devalued our currency to more properly reflect the "value" of United States assets but that began to crush their economies so their central banks reversed some of the dollar decline. 

Asset prices are coming down, total earned income is going to come down, both corporate and individual; which means tax revenue (local, state and federal) is going to come down.  Many of those assets whose value Bill wants to keep inflated, exist because of loose credit and now or in the near future cannot service their debt for lack of demand or in governments cases ability to pay.

Here is the solution.  Any home destroyed in this hurricane season, the owner gets a foreclosed Fannie Mae or Freddie Mac home in Ohio, California or Nevada.  Lets use this time of natural disaster to shrink the housing base and relocate families to locations that are in less of harms way.

In one small way letting natural disasters wipe out assets, inflates the value of the remain assets achieving Bill Grosses goal of asset value stability.