RE: Two superior alternatives to the Paulson stupidity

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RE: Two superior alternatives to the Paulson stupidity - 9/27/2008 6:43:13 PM

NeedToUseYou

Posts: 2297
Joined: 12/24/2005
From: None of your business
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The banks should do whatever they want with the mortgages they are their mortgages. The government should do nothing.

Zero, bailout for anyone.

If the banks want to unload bad mortgages, they can sell them. Right now, there are billions of dollars to scared to enter the market, there is enough money to buy all the bad mortgages, they just won't accept the market pricing, because it won't cover their costs, or prop up their other investments. Sorry, so sad, banks can lose to, or they should be able to.

Here's a website address they can use.

www.ebay.com

(in reply to DarkSteven)

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RE: Two superior alternatives to the Paulson stupidity - 9/27/2008 9:40:12 PM

TNstepsout

Posts: 1558
Joined: 8/3/2005
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quote:

The government would make back their money when the home is refinanced or sold.

quote:

ORIGINAL: bestbabync

does anyone know what this type plan would cost the taxpayer?

Well, if this part of it works "The government would make back their money when the home is refinanced or sold." then the taxpayer wouldn't have to pay anything. Or if they hold the loans long enough and the property values increase, they could even make money. I doubt we'd get any of it, but at least we woudn't be out anything. Seems like a good plan to me.

(in reply to bestbabync)

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RE: Two superior alternatives to the Paulson stupidity - 9/27/2008 9:44:53 PM

TNstepsout

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Joined: 8/3/2005
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quote:

ORIGINAL: Lorr47

Why deal with the derivatives? If we are going to give Wall Street money why not take convertible debentures or convertible preferred or even common stock in return for the taxpayers money. Then you have the assets of entire companies to secure your money. Then, since we are not spending millions trying to unravel the derivative issue, you can help the home owners. Since Wall Street has the money shouldn't they be happy. My problem is that they are trying to have the taxpayers take the possibly worthless derivatives at more than market value without recourse. I would rather loan Wall Street the money with the power to take their companies away from them if they screw up again. If they default we could house the homeless in the various Wall Street Exchanges and other offices.

That's why it makes more sense to only take on the bad assets and let the banks work out the rest. If the bad assets are taken on at a discounted rate in order to inject quick cash the gov should be able to make money on them or at least break even. After all, they are backed by homes, they are not completely worthless paper. Then the banks have only good assets on the books and people will feel confident investing with them again and that will generate more cash and the banks should be able to work out their own problems from that point.

(in reply to Lorr47)

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Post #: 23