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To: John McCarthy who wrote (78516)	4/30/2008 12:18:10 PM
From: Vitalsigns	Respond to of 116555

Hi John , I too am glad this is out in the open because it reveals much . My problem with all of this is "Where does it end?" If you step in to save one group , what about the others who have made good so far and decide "well if they get a break , I want one too". The Law works because people understand that there are consequences to every action , when those consequences are eliminated or reduced on an adhoc basis , then Law enforcement begins to lose it's leverage . The Bailouts as we know them have already crossed this line , to add to them only further clouds the line between risk and consequence . Pandora's Box has already been opened , the question is can it ever be closed again ? We can make a fair assessment that prices for homes will continue to drop as there is still too much inventory sitting on the sidelines that needs to be absobed . It will be painful and there will be bank failures unfortunately this too cannot be stopped . The Fed had many chances to put a stop to it but turned a blind eye . The market regulators also were part of this by relaxing key regulations aimed at preventing risk , thereby in the end promoting excessive risk taking. The longer we delay the inevitable pain , the more pain we will have . the following report pretty much sums up in details why we are were we are and why we are a long way from getting to the bottom of this mess mrmortgage.typepad.com and today this from mr.mortgage on Pay options ARM's - mrmortgage.ml-implode.com Wall St Journal just nailed Pay Option ARMs. Don't ya love how the banks still categorize these as 'Prime'. I have said for a long time now that 'the Pay Option Implosion will make the Subprime Implosion look like a bad earnings report because they cut across all socio-economic boundaries'. Now the data are proving my point. This bailout will be the mother of bilouts. At least with a subprime loan, the balance does not rise each month, thank goodness. -Best, Mr Mortgage -recent reports from mortgage securitizations suggest that subprime delinquencies have started going bad at a lower rate while delinquencies on option ARMs are speeding up. -On Tuesday, Countrywide Financial Corp. said that 9.4% of the option ARMs in its bank portfolio were at least 90 days past due -Unlike subprime loans, which went to people with weak credit, option ARMs were generally given to borrowers considered to be lower-risk. -Washington Mutual Inc. reported earlier this month that option ARMs account for 50% of prime loans in its bank portfolio, but 70% of prime nonperforming loans. -Wachovia Corp., non-performing assets in the company's option ARM portfolio, which was acquired with the company's purchase of Golden West Financial Corp., climbed to $4.6 billion in the first quarter from $924 million a year earlier.

To: John McCarthy who wrote (78516)	4/30/2008 1:05:14 PM
From: Bill on the Hill	Read Replies (2) \| Respond to of 116555

Good God John, Just because its transparent does not make it right. That is like saying to a thief "Please come by in the light of the day to steal. I just want to get a good look at you in your ski mask.". Either night or day. They are stealing our assets. Let the market decide. Pull the government out of the mortgage business. Stand back and let these things sort themselves out. The market will CURE the DISEASE if they let it. Otherwise it will be the taxpayers. This is ASSURED DEMAND DESTRUCTION of VALUE.

To: John McCarthy who wrote (78516)	4/30/2008 10:46:31 PM
From: maxncompany	Read Replies (1) \| Respond to of 116555

John, I know Washington, and they won't let market forces play out without intervening. But they should. Because we would get to the bottom sooner, and thus begin the recovery sooner. Any of the dozens of proposals flying around will only prolong the mess, pushing recovery further into the future. Not to mention the obvious moral hazard, leading us to make more risky and foolish financial decisions down the road. Some proposals may not seem as bad as others, but they are all bad.