What's the big deal about the Government backing mortgages? It's been like that in Canada forever. I remember golfing with a Mortgage Broker from Seattle and he couldn't wrap his head around the fact that many Canadian mortgages are backed by the Government. When my mortgage comes due, unless I go shopping for a new one, the bank rubber stamps the renewal. And it's not just me, it's like that for everyone.

It just seems to me that it adds stability to the economy when the Banks aren't fearing for their money. Of course in Canada the banks are regulated pretty closely as well. There are only 6 chartered banks in Canada. All other financial institutions (ie. credit unions) have to clear through them, so it's not entirely the same scenario as in the US.

Still it seems like a better solution than the "everyman for himself!" scenario.

Erich