[Arkinsaw]

This means, the “government” [read: taxpayer} will become the ultimate guarantor of every garbage loan every bank has on its’ books. Without limit.

Congratulations, everyone. We own all the banks....or, wait...do I have that backwards?

This is nothing new, the taxpayer reimburses for theft all the time.

The long term damage is that we are removing "risk" from the free market system. If you make bad economic choices you can run to Congress and they will bail you out. "Risk" is a critical part of the system and by making it go away you promote people to create economic bubbles (with reduced risk).

[Owen]

Nothing good can come of this.

The loans being backed are 1 trillion dollars. The government is in effect creating 1 trillion dollars of money entity.

How is it conceivable that this does not dilute the value of every dollar in existence? And if that happens, given that oil is priced in dollars, what happens to its price — denominated in dollars.

[BlackVeil]

The long term damage is that we are removing "risk" from the free market system. If you make bad economic choices you can run to Congress and they will bail you out.

A huge risk, which, if it goes on, could tank the currency.