FLU I agree with you that it does indeed suck but really is not anything that is unexpected. We discussed these sorts of events in the past because we all knew that deep down, the government has/had no other choice. It is kind of like that inevitable prostrate exam, that men have to get when they reach a certain age. You dread it, you do everything to avoid it but at some point… well you know the rest of the story.
Seriously we talked about a conservatorship or some equivalent of the trust resolution entity of the 90’s… which is what this really is and well… so now it has happened. I agree with everything you said, it is really disgraceful and well… I guess we need to think about the next logical step.
What concerns me now is how the next wave of foreclosures will indeed be dealt with. My biggest fear is for a possible substantial socialization of these distressed homeowners. I don’t doubt for a minute that we could see loan adjustments that will be backed by the government perhaps in the form of massive writedowns in addition to fixed low interest rates. Of course the new loans would be FHA insured as well.
So no, we will not be homeowners like you said… I think of it as we will be more live benevolent philanthropists… except that we will not even be able to deduct the expense.
You are right though as they will pack our dollars in big crates and send them back east…
