If your credit is good, you will be able to get credit.
Stop talking nonsense.
Great point.
If the govt. is dumb enough to go ahead with the 700B plan (a number picked out of thin air!) there is no guarantee that the banks buying these types of securities will do so again, or expand their lending in other sectors they think are risky. IOW, if the banks don't start lending in these areas guess who will be making all the loans?
The alternative plan with changing the mark to marketing rule to value these securities based on their cash flow solves a lot of this problem. Also, if the govt. insures these securities the exposure is less than 10% of the initial 700B that will be spent buying them. The thing nobody is talking about is the vast majority of the mortgages are being paid.
So why have the govt. step in and ultimately nationalize home lending?