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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Pogeu Mahone who wrote (99819)	11/22/2008 11:59:44 AM
From: patron_anejo_por_favor	1 Recommendation Respond to of 110194

>>Our structured debt industry used legal and financial principles (the latter, faulty) to engineer this crisis, with the view that nothing is impossible. The industry was dead wrong in its economic assumptions—but nothing is impossible with careful structural consideration. << LOL, yes nothing is impossible with structured finance. Including the total destruction of the World economy in the space of 4 years for the "greater good" of the God of securitization! Some of the remarks were a hoot. No way mortgagess should be subject to cramdowns. A great many (most?) of the upside down homedebtors are currently living in homes they should not be in. They will never be able to generate sufficient income, so why encourage them to stay? It's wasting their money and delaying resolution of the problem. Encourage them to leave, subsidize it so the house isn't vandalized, maybe even subsidize rent for several months to cushion the blow a bit. Let the bank takeover and make the best decisions on disposing or utilizing their property. Yes, THEIR property! If the banks want to arrange lease-sale options it should be at their discretion, not as a government mandate. Homeowners who's situation is deemed salvageable could be eligible, others won't be encouraged to throw away more money in a hopeless attempt to stay put. Instead, they could use the dough to start saving for a proper down payment for their next house, one they can actually afford. Maybe an IRA-like tax deductable-tax deferred savings plan for this should be developed.....