He argued that action by the White House would not only help homeowners who might lose their home. Wall Street, which created, marketed and invested in complex securities backed by subprime mortgages over the years, could benefit as well.
“Your stocks and risk-oriented levered investments will spring to life like the wild flowers in Death Valley after a flash flood,” Gross wrote.
Aha – there is the real reason why he wants this. It would be the indirect bailout to over-levered investors.
Write some checks, bail ’em out, prevent a destructive housing deflation
Cool, just so long as they write checks to all the savers out there as well…you know, maybe a 20-40% of the cost of a house check that will cover what the prices should have fallen to.
