[ExI] A new low

[aiguy at comcast.net]

The goals of the loan bail out problem are four fold as I see it.

1. Help customers who were duped into dubious loan terms from losing everything by helping them obtain conventional loans even though their credit may remain borderline.

2. Prevent runs on the banks that made too many of these loans and keep the bank themselves from defaulting and prevent the federally insured deposits  from having to paid by the government.

3.  Prevent the real estate bubble from collapsing by too many homes being repossessed in too short of a period.

4. Prevent the US economy from entering a recession/depession due to 1, 2, and 3.

Banks such a Countrywide are already suffering greatly because of too high of a percentage of subprime mortgages.

And remember the last time major banks collapsed in the United States we had a little thing called the Great Depression.

Gary

> spike: 
> >I came to an uncomfortable realization. Over the years, somehow we have 
> >come to regard a good credit rating as equivalent to money in the bank. 
> >Like the cold cash game, it somehow demonstrates a lack of understanding of 
> >the importance of negative numbers. The critically important number now is 
> >not the amount of money one has in the bank but rather how much the bank is 
> >willing to loan one. 
> 
> >Am I the only one who sees a deep pathological social condition here? 
> 
> >I welcome the comments of Europeans, Aussies and others. Same there? 
> 
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