Propping up housing market by guaranteeing mortgages

Something must be done. I just hope this will be used to benefit the nation and not end up lining insider's pockets with our cash. Perhaps those enormous bonuses should be returned by management that was pushing risky loans so much.

clipped from www.spokesmanreview.com Homeowner help in the works Feds would back loans Peter Whoriskey, David Cho and Zachary A. Goldfarb Washington Post October 30, 2008 WASHINGTON – Negotiators for the Treasury and Federal Deposit Insurance Corp. are nearing agreement on a plan to have the government guarantee the mortgages of millions of distressed homeowners in what would be a significant departure for the federal rescue program, which has so far directed relief exclusively to banks and other financial institutions. The plan, which sources said could cover as many as 3 million homeowners in danger of foreclosure and cost between $40 billion and $50 billion, would go well beyond previous government and private-sector initiatives. Critics say these have attracted too few lenders or offered too little aid to homeowners to stem the foreclosure crisis. The possible details of the homeowner bailout emerged Wednesday, another day of extraordinary measures by U.S. and foreign governments to arrest the financial crisis.