Do you believe the people should allow the government to back loans made by banks?

Until banks were allowed to become gambling investors by the Clinton/Gingrich repeal of the Glass/Steagle Act, the system worked.

It's part of the Jewish money machine.

From what I understand, this was done to ensure that if there ever was another run on the banks as seen in the 1930's, the consumer would be protected against default return of payment from the banks. Also, it helped prevent future...oh, heck! I'm not even sure I'm right on this one. Any help, people?

No !

The government shouldn't be in the business of backing loans whether it's a home loan or something like Sylindra (sp). The government should only do as they currently do, guarantee deposit's up to a certain amount and require banks to follow the protective regulations that make guarantee of deposits possible.

The government backing of loans is exactly why we had the housing crisis. Banks, were TOLD and ENCOURAGED to make loans with no down payment for people who had either no credit history or bad credit. So please don't make the mistake of believing this was caused just by mean old banks. The DEMOCRATIC party and Barney Frank are just as guilty.

The gov program fanny mae and freddy mac back housing loans. Perhaps I missed it, maybe they are defunct.

No that was what I was referring to. Fanny and Freddy were the absolute root of the housing disaster. Our government backed those loans and almost FORCED commercial banks to do the same. At some point the loan industry decided, what the heck, why worry if we make loans to people who can't pay, the government is backing it all and they are TELLING us to do so. Freddy / Fannie were making the loans but through commercial banks. It was a no loose propersition for the banks because the US tax payer was backing it all.

The mind blowing things is that it is still going on to a large extent UNLESS you can't use Fred/Fann then, even with GREAT credit the banks are requiring 20% down because those loans aren't backed by the government. Would we have had a housing crash if ALL home loans would have had a requirement for even 3 - 5% down? Absolutely not.

the way the loans are amortized, practically all money paid for the first five years is interest or bank profit.

Not unless the laws of usury are re-enacted...