The next step is for the lenders to bundle the small loans into securities to sell to investors. They'll say the securities will be safe because they'll be protected with credit default swaps, CDS, that will be sold on the open market. They will get AAA ratings.
Next, you'll be able to trade naked CDS and securitized bundles of CDS guaranteed by investment houses and major insurance companies. This market will be holding trillions of dollars of putative value.
Then a bomb will go off in the lobby of one of the investment houses, perhaps figuratively, and that company will collapse. The CDS will all be called and the trillions will evaporate, and by that I mean anyone who is not a too-big-to-fail entity will lose their shirts. Also, they'll lose their houses.
The treasury will prop up the too-big-fail-entities and, oh, btw, the investments of the political leadership, and by that I do not necessarily mean the elected leadership.