NEW YORK (AP) – Stocks are surging with the Dow Jones industrials up more than 300 points following a report that the federal government is considering creation of a repository for banks’ bad debt. I got it- http://www.toddmorrison.com/img/apr03/outhouse.jpg
Oh my. What would that end up costing the taxpayers after all the defaulted mortgages were added to it? I guess they’re already in the business of owning way more real estate than they want with all the fannie and freddie crap, why not pile on the collapsing whole loan market too. I’m interested to see the details on this if it’s more than just a rumor.
Deadly action …
They can’t do this…
Please no.
Wow, this is awful news.
Does the elimination of short sales on the London Stock Exchange have any to do with this explosion today?
I just read this on Yahoo Finance… news to me
what exactly does this mean? govt will buy the low quality debts?
moral hazard.
Is this basically a do over?
I think it is good someone is actually thinking about the root cause. A plan is nice. There are still steaming piles of rotting poo on people BSs, nothing has changed, it doesn’t matter whose fault it is, it is a problem worldwide now. Does containing the poo make it less smelly? I’m not smart enough to know!
Good point purealpha. A do-over isn’t necessarily all that bad in the short term, but one does feel it sets the precedent that people who are dumb about risk don’t have to pay the consequences of their bad decisions. Isn’t that why we pay them high salaries? Your *ss is grass if you mess up, unless we can get the taxpayer to cover it.
LOL @ do-over. Countrywide is all “hey wait can we come back from the dead now too, no fair!”
The more I think about this, the more angry I become. All of this will so happen again in 10-15 years ahead. Well, the good side is that we have seen the video, we all should know exactly what to short when all this happen again (wait, short-selling is banned).
Hedge Fund America - 2&20