johnbee

Another Day, Another Bailout: Deleveraging Denial

Perhaps I'm a bit naive here but I don't understand why the Government needs to print money to buy toxic assets or pay Fannie Mae etc.
Why can't it simply guarantee all mortgaged domestic properties up to a value of 80% of the home based on a local government rating assessment?
This would cost nothing so long as the mortgagor remained solvent, and the guarantee should assist this greatly and give depositors a better feeling of security so as not to withdraw banked money and put it into Treasuries or under the bed. Am I wrong or what?