Originally Posted by yys

It injects liquidity into the markets and removes toxic debt from the banks balance sheets thus freeing up capital and allowing them to start lending again.

Tell me which way Libor rates have been going since governments intervened?
They might not have returned to normal yet but rates are a hell of a lot better then if governments had done nothing and they continued to rise. What bizarro world do you live in where banks stop lending to each other but yet still lend to your average person?

As to how you would lose your home; its pretty simple. Your mortgage comes due but no one will refinance. Good credit; tough shit. You can't pay off the mortgage and the bank forecloses. You lose the home.

Of course if you could afford to take out a mortgage amortized over 5 years or less you might be in luck. Ask your friends and family if they have the financial capacity to pay of their mortgage in the next 5 years? I'm pretty confident the majority of responses will be a resounding NO.

You wish to buy a car but banks aren't lending money because they don't have any ergo you don't get the loan so you don't get the car. Pretty basic.

I won't even get into what those scenarios end up doing to the economy and employment.

Again you don't seem to grasp what is happening.