many have blamed the current meltdown on the securitization of debt. but now the gov intends to step in and encourage the further securitization of debt to the tune of (what?) 200 or 800 billion bucks. does this make sense? (obviously, however, $800,000,000,000 is literally just another day's expenditure for these folks.

A Treasury news release noted that in 2007, about $240 billion in car, student and other consumer loans had been packaged by the companies that issued them into larger securities and sold to investors, who then benefit from the flow of payments from borrowers. That system of packaging and reselling loans keeps money flowing to banks and other lenders, allowing them to make even more money available to consumers.

However it all but stopped over the past two months, leading to rising interest rates, a downturn in lending -- and a risk that economic growth could be dragged down even further.

Comments

[Rik Little]

We need Two things. To become pirates ourselves, carpet bomb New Jersey and thus Finance a WINABLE war and get cheap gas for the American people. Second, We need a great Bipolar drug. The Medical industry probably already has it to force (at gunpoint if necessary) to be consumed by the Banking and Judicial industry of this Country and cure the debt problem. It would fix their crazy minds on the matter and relieve all debt. Yes we can Change!!