 Financial expert assistance required!
As we have all heard, the American governments bill to buy up £700bn of "bad debt" to restore confidence in the banking sector, has, at the second attempt, been ratified to the statute books via congress and the house of representatives, and is now law.
I am really not au fait with how finance on this scale works. But I am confused because this is what it appears to me to be like... And yes this may be staggeringly naive, but this is why I require someone wise and learned in the ways of the finance, to explain to me.
As I understand it, the £700bn of "toxic" debt has been caused by money lenders (banks predominantly) loaning too much money in the form of mortgages mainly for what they can cover and sustain over a given period.
So in effect this is around £700bn (or a proportion of this money) of mortgage debt across the US (and probably in other countries too).
So if the government is using PUBLIC money to pay off this debt. Why does this not therefore mean that everyone whose mortgage is part of this "toxic" debt? has therefore paid for their house? After all, their taxes are being used to cover this debt?
Alternatively, does this mean that all the houses involved in this debt, are now the property of the Government? Are many millions of Americans now inclined to offer to put up George W, Laura and his dog for the night free of charge?
Because to a very confused person as I am... It seems to me that the banks have received the money back that they have overspent themselves. And are now going to receive it back once again in repayments from everyone else. If this is the case... Does it not mean that people are in effect paying TWICE for their house, and the banks will in time receive double the value of the money they rather stupidly lent in the first place?
I am sure there is a financial expert guffawing heartily at my brazen naivety here. Therefore I ask to be enlightened!  | 
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