US Government considering paying people's mortgages

[king_of_the_castle]

Sardauk said:

NJ5 said:
The government can't stop the domino effect. At best they can hold some dominos for a while, but they can't do it forever.

What they can do is... not give money.. but loan some money, because, in theory, governement are at risk-zero.

Here they loaned some money to the banks and became shareholders. When the economy will be more stable, they will be able to buy back the shares and their independancy.

This way:

1- Confidence is restored,

2- Credits are released

3- Companies can go back to their business and people stop loosing their jobs

 

If everything works well, the governement might even make a profit out of it.. which will be reinvested in the national economy.

... well that is in theory... ...

 

Your theory is based on the assumption that those companies will spend that money wisely, but really this is like giving money to a crackhead and thinking they'll buy food with it.