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i need "bailout for dummies"


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okay, so in between normal activities i have been doing my best to read up on this bailout and trying to make heads or tails of it. i am getting much of my information from you gals (and guys) and the articles and websites you are generously linking. is my basic understanding correct:

 

the govt. will buy up 700 billion dollars worth of bad consumer debt (the bulk of which is mortgage debt?) and then attempt to sell off said debt to private lenders after negotiating lower interest rates for the consumer. this will free up the original banks from whom the govt. purchased the loans to begin lending again immediately.

 

so, the original 700 billion dollars of bad debt will still exist, plus banks will begin lending again, which will create even more debt, but this debt will be only good debt (meaning that banks will use more stringent guidelines when qualifying applicants).

 

i know i must be missing something. anyone? :bigear: :bigear: :bigear:

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