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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Smiling Bob who wrote (176895)	1/13/2009 6:09:45 PM
From: GraceZ	Read Replies (1) \| Respond to of 306849

Seems it would be preferable to entrust individuals with what to do with their money rather than continue handing it over to the banks in large chunks only to watch it vanish. There is a huge scale difference here between buying the financial assets of banks using tax payer money in order to put a floor under the market for those assets and appropriating what are essentially private assets. Right now all they are doing is trying to effect the market price by acting on the margin a far smaller task. I think even this is doomed to failure but the idea that they would take over all mortgages is beyond comprehension, beyond the scale of our entire GDP. There are 14 trillion dollars outstanding in RE mortgages. Say the government "nationalizes" mortgages, they take possession of the assets and refi them at some low rate. Do they buy those assets at face or some government demanded discount? I can tell you they can't do either even if this was legal. If they simply dictate the price this means they effectively steal 14 trillion dollars worth of assets away from the private sector and then tell them what the return on those assets will be. There is no precedent for anything like this in the free world. Maybe this doesn't scare you socialists out there but it scares the hell out of people like me. How is the government taking of private assets "entrusting individuals with what to do with their money"?