Consumer Law

Query About the Bailout Mechanism

By Jeff Sovern

Now that the House has rejected the bailout proposal in its present incarnation (see here), perhaps those who know more about this subject than I do can help me understand something: if the problem is with the freezing of credit, why doesn't Congress simply create a mechanism to lend money to credit-worthy borrowers (perhaps by providing money to lenders for that specific purpose, or by paying lenders a service fee to provide the necessary services to choose credit-worthy lenders, service loans, etc.), rather than by buying assets of uncertain value?

Full post as published by CL&P Blog on September 29, 2008 (boomark / email).