Comments on: What To Call It?

By: Bryan

Bryan — Fri, 26 Sep 2008 17:08:44 +0000

I’ve said from the start that the problem, the root problem, is bad mortgages on overpriced property. Buy the mortgages and reset set them, where possible, to standard mortgages based on realistic prices for the property. Recreate FDR’s HOLC to handle it because we know it worked. The “toxic paper” was a Wall Street creation and is their problem, not mine.

You don’t reward stupidity.

By: fallenmonk

fallenmonk — Fri, 26 Sep 2008 14:58:44 +0000

I am still of the opinion that we just need to let this thing run its course. The reality is that only about 1 or 2 % of the mortgages out there are toxix and it would actually be a lot cheaper(since they do represent real property) to just buy them all and sell the property for whatever we can get. The net cost might be as much as $200 billion.
All the companies that are upside down because of derivatives and the like should just be allowed to die. We shouldn’t reward bad behavior with a do over.

By: Bryan

Bryan — Fri, 26 Sep 2008 06:10:17 +0000

I think it would depend on how much paper is clogging the system. Some people think you can just flush anything.

By: Steve Bates

Steve Bates — Fri, 26 Sep 2008 05:40:20 +0000

Does Rid-X work in a septic bank?