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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: SilentZ who wrote (465423)	3/21/2009 6:34:55 AM
From: Road Walker	Respond to of 1572658

The government establishes a department to assume them at no cost to us. We decrease the payments to points where we make the government some money but most of them can get paid. Nationalize the banks? Could go that route. It's not where we really should be going, but it's better than where we are going. I don't think so.

To: SilentZ who wrote (465423)	3/21/2009 3:40:15 PM
From: tejek	Respond to of 1572658

The government establishes a department to assume them at no cost to us. We decrease the payments to points where we make the government some money but most of them can get paid. IMO the best solution is a variation on your approach. The gov't takes these toxic assest and puts them into a gov't supported 'bad' bank and lets them sit there until the housing markets come back, making them valuable once again. Then you sell them off for a profit. For some reason, there is a reluctance to do that. I am not sure why. I think your approach would be less palatable because you would have to reduce payments to such a low level the gov't would take a huge bath. I think you have to show taxpayers a solution that in the end makes the gov't whole again. The other part of the problem has to do with credit. Banks gave out too much credit and now people and companies are defaulting. You can lower interest payments....that would help.....but the great unwind of credit will still be painful and I am not sure there is an easy solution other than to go through it.