The $700 Billion Question

Here's a plan for that $700 billion: Let's use it to help pay the mortgages for everyone who defaulted because they were conned into payments they couldn't afford. Then all that bad paper the banks are holding have value again and people actually get houses. I know, it doesn't pour tax money directly into the pockets of the bankers who got us into this mess, but can't we just tell them that a rising tide raises all boats?