Why doesn't the government just guarantee new loans?

[MrPerson]

Let the banks submit the credit apps to the government.

If it sounds good, guarantee it.

[valerief]

1. All the money has to go the hedge fund managers to give to the rich

people who bought securities that bet the mortgages would foreclose. I think that's it.

[masuki bance]

2. Especially credit apps from the dealerships

Auto sales could use a boost.

[lynne]

3. Guarantee them with WHAT???

- last I looked, we're operating in the red. We going to put up Wyoming and South Dakota as collateral? :shrug:

[Joe the Revelator]

4. The OP has no ability to see the big picture.

[MrPerson]

6. You see only your picture.

[Joe the Revelator]

7. And you want frilly feel good answers to problems

that really aren't feasable, because you apparently have no concept of the logistics of your proposals.

[MrPerson]

8. Not true. I have seen failure turned into success many time.

But the ones that succeed don't ever give up and are always looking for a better solution.

Where is your idea, sir?

[Joe the Revelator]

9. My job is not to think of ideas; but I will support those that make sense in the real world

A basis in reality is a prerequisite for any plant that you make public.

[MrPerson]

12. No You don't want to do it because it helps

people you don't identify with and secretly hate.

[Joe the Revelator]

13. Oh yes thats exactly it, its like you crawled in my head and took a picture of my brain

You're a fool. Why not answer the question. WHAT is the government going to back up these loans with?

[MrPerson]

5. The bailout money.

[jody]

10. Govt is busy right now paying old loans that it guaranteed and have defaulted. n/t

[MrPerson]

11. The problem is the banks won't make loans.

[dkf]

14. Why guarantee loans? Just give em out ourselves.

Since the banks won't loan, let the Govt. Nobody wants to buy loans unless they are backed by the Govt anyway.