CAR you are a smart cookie. I think though that in some cases you have make a better assessment of the time value of money. Remember that there are costs associated with the bank holding the properties, possibile legal issues, brokerage fees to sell it etc… Also in this particular situation you are totally ignoring the liquidity needs of the lending entity. Finally I believe we have already seen that it is not possible to dump all the properties on the open market as it may crash it.
Now in theory YES I agree with you 100 percent. I even agree with the proposal that you put forth. However it makes to much sense. It also levels the playing field. Look it if “could” happen, that is, if the government really wanted to look out for all people rather then just looking out for Wall St, then yes this is the right way to do it.
However, in the world we live in, I think the next best thing is to let more rich Wall St guys get alot richer. Let the banks liquidate to investors, then bail the banks out, then the investors make more money over time on the properties they bought in bulk.
