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Originally Posted by SCUDSBROTHER
I am not against people getting loans, but they want to have the same scum (that made these bad loans) be the ones in charge of the loaning. That is an example of repeating the same mistake(which is the definition of the word "stupid.") That's the very 1st thing wrong with this plan. No accountability whatsoever. Give the same crooks more money to loan. No, miss "I want less Gov't," I am not interested in saving the stock market. This a-s-s you voted for wanted to have people putting their social security money in the stock market. He was wrong. Now he has zero crediblity on economic issues whatsoever.
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it's still not that simple. you have the lender, and the person who sought the loan. then you have the lender who then sells the mortgages as an asset to an investor. then you have the loan fail, the bank stuck with the house, and an investor who 'owns' a note on a house that's worth far less than the house itself. now mulitply that by hundreds of thousands. so, banks retreat and tighten the credit market. except for those with excellent credit, loans will not occur. multiply that by millions. you've just cut off the spending power of tens of millions of people.
so, ignore the problem and tell everyone to change their habits-that solves no problem. well, it won't matter if nothing is done, as so many people will be out of work, they won't be able to buy anything anyway.
part of the bailout was supposed to include more regulatory measures as well.