I'm not an economic wiz or anything... but here's what I understand...

[glowing]

We, the taxpayers, need to bail out wallstreet to allow banks to keep loaning money... this is the reason why we are supposed to help.

Well, we just bought 2 mortgage companies and we apparently have billions to throw around, so why doesn't the US govt loan money to people and businesses on a fair intrest rate? The govt would acually make money long term, and we'd solve the "credit freeze" problem. Also, this would allow us to say no bail out. Money would still be available for car loans, education, small business... Obviously, when banking is correctly done, it tends to make money... that's why bankers are filthy rich... So, why don't WE establish a bank, and WE as a people would make money.. Eventually, we might be able to do away with taxes because the interest collected overtime would be so profitable... Essentially, WE would be our own wealth? NO? I know it sounds socialistic, but not really when the govt is acting as a bank and loaning to people who can pay back... Also, when there is staggering loss in jobs or someone becomes laid off or ill, the GOVT could allow a defferment, rather than throw someone who is MOST vulnerable out on the street.

[ixion]

1. good idea... if the government was actually there for we, the people

I think you'd have something. Unfortunately, government exists for the top 1 percent, so instead of an affordable loan, you get a red-hot poker in the arse and a lifetime of collective debt.

Welcome to the new 'Murika.

[glowing]

4. I just wondered if it was actually something that could #1. work and

#2. something people would use.... I would hate, though, to cut off any competition by just one organization, because congresscritters are greedy bastards themselves, but I don't understand why they don't get into the banking industry themselves.. the govt has the ability to spend as the please, obviously, why not actually collect some interest on money spent?

[ixion]

5. I think it could work and that people would use it

however, historically speaking, putting a bunch of power-hungry politicians in charge of a large loan pool is a recipe for trouble. Greed would inevitably render it a tool for exploitation, rather than assistance.

[glowing]

8. That's why I think it would have to compete with independent banks..

It keeps the system from hurting a lot of people. Given many people's mistrust of govt, many wouldn't use the govt bank, even though they don't have a choice now with their mortgage...

Then again, the politicians do a lot of disgusting things just writing budget bills... I would think that a bank run by the govt would have to be independently run with lots of oversight.. Kinda like the post office, seperate, but a part of the govt.

[bentley]

2. Debt is the problem

Yet, they want to keep the money flowing so we can go further in debt.

[NNN0LHI]

3. I think you are right

[glowing]

6. Not all debt is bad. There are not enough people who make enough money

to buy a home and pay outright... Hence a mortgage. The interest on my mortgage is wayyy more than the principal, so the govt being in a banking industry, should make money off that interest.. compound that by many, many people buying homes, you make money. Also, student loans is another debt that should be payable as the education pays for the future of work you've trained yourself to do... so those aren't bad debts... they are just debts. Small business normally use loans to have some starting capital.. If successful, they will employ people and will pay back the loan. NOT all debt is bad. Debt one cannot pay back is bad.. Betting on the ups and downs of abilities to pay and the gas price is disgusting..

[ayeshahaqqiqa]

7. Makes sense to me

but then I'm for having the government take over the banks or strictly regulate them.

[glowing]

9. I suppose sensibility is something our congress wasn't blessed with.

[sinkingfeeling]

10. Basically that's what FDR did back in the 1930's. He froze foreclosures and set up the

Home Owners Loan Corporation.

[glowing]

11. Why not try it then, seemed to help before? Maybe?