Bail-out questions

[Crumb]

Originally Posted by yguy

Actually the opposite is true, because when those companies go down, so do the jobs they provided.

The great thing is that directly buying up the bad mortgages helps the home owners and the companies.

Also if these jobs depend on the inflated values of homes then they will go away one way or the other. All that values simply does not exist, which means we have more jobs than the value of home collateral can support. Propping those jobs up with more credit is a temporary solution that simply costs more money.

The obvious solution is for the government (and private buyers) to buy up a large number of the troublesome loans and then renegotiate them and try to get some long term returns that help buyers keep their homes. The companies should lose money and be forced to shrink, but we are over inflated with home equity lenders simply because of the inflated home values. This industry needs to shrink.