Consumers need to change

The purpose of the bailout money was to get money flowing again. But money given to lending institutions did not result in an increase in a willingness to borrow money. This freezing of credit is causing a huge slow down in the economy.

So even if a lending institution received an influx in money it did not solve the overall problem. Would there be investors who would purchase securities for the loans? It seems lending institutions felt that it would not get investors to purchase the securities. So unless the U.S. government continues pumping money into these lending institutes, the loaning of money will stop.
Consumers need to change
As consumers we want to get the item now and pay for it later. We will go make the purchase, sign up for the no payments no interest for x number of months, and then not pay back in the time allowed so the consumer pays more in order to get the item now. Consumers should work on saving up money. Set up a Christmas fund. If you purchase something on credit you would have to make payments. Start making the payments to yourself before you get the item. If you are paying rent for an item now that is needed (i.e. housing, laundry), then paying for it on credit is fine. You’re developing equity, and may be saving money on your laundry. Getting a student loan allows you to acquire the knowledge that you need to get a good paying job in the future.
The ease of getting loans tends to let consumers to get in over their head. How many people got home loans with an Adjusted Rate Mortgage (ARM)? When their rate increase homeowners are not able to pay their monthly payment. To try to refinance at a lower fixed rate becomes difficult as lending institutions became more careful in borrowing money. They now apply a standard that would not have not let you borrow the money in the first place. You try to sell the home but its value has gone done and you’re not able to have enough money to pay back the loan.