Do we consider which it competence be the great thought for governments to pulling equity collateral instead of debt collateral to finalise the appropriation problems which businesses have been encoutering due to the credit crunch. Is there the approach which this could be done.
{ 1 comment… read it below or add one }
I think debt would be better, but the more important issue is to whom this debt should be made available to. I don’t think the bankers or those greedy individuals who took out loans they couldn’t afford should be offered such.
If the government chooses to give out low-priced debt, the recipients should be those guys and businesses on Main Street that still have good credit scores and certainly the capacity to PAY. If someone took out a mortgage which they couldn’t afford (and which consequently kicked them out of their home), that blunder is going to show up on that individual’s credit history. Bailouts shouldn’t be offered to these guys. After all, if you make a wrong bet, you should live up to the consequences and face the music.