The investors don't trust the banks so they won't invest. Even if the trillion was payed off how do they know it won't happen again? Plus the trillion is only being borrowed so it still needs to come from somewhere, if it tanks the economy people are going to save or invest someplace else. Not in banks.
On Mon, Oct 20, 2008 at 5:07 PM, Gruss Gott <[EMAIL PROTECTED]> wrote: >> Sam wrote: >> The crisis was caused by forcing lenders to provide sub-prime >> mortgages to people that couldn't pay them back. > > That's just plain false. Here's how you know: > > The government could easily just offer to buy up every sub-prime AND > near-prime whether it was in default or not. That would cost $1T. > > If your assertion is correct, why not just do that and be done with it? > > And since $700B is 70% of that entire market why wouldn't banks be > happy lending knowing that 70% of the problem has already been solved? > > Please explain. > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;207172674;29440083;f Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:275739 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5
