So I take it that your contention is that the market will correct itself unencumbered? That there will be no measures taken by our government at all? That this stimulus package will be it? Poof that is all she wrote?
You have to come with something better then that. Agreed there is a fine line to walk… that the feds cannot bite those hands that support our unsustainable debt….however I would be quite willing to wager a steak at Donovans that this is not the last of the life preservers that the government will throw to FBs.
Don’t get me wrong, I am not saying this will save things or turn the market around. All this will do is to prolong the agony, cost more money to the taxpayers, and piss off investors aka those who support our debt.
Again, you have to look beyond a foreclosure. That is short sighted. You need to look at who will go belly up if we resurrect the old RTC and let all these obligations die of natural causes. Just who do you suppose has investments in these vehicles? Perhaps, county and state governments? Perhaps many many pensions? 401ks? unions? The list goes on and on. This isn’t the S&L debacle where a couple hundred banks go under and everyone is okay. This cancer is pretty much spread through the entire lymphatic system and I am more and more beginning to think that our government may not be entirely sure that they could handle a systemic purge of the system by natural causes. I think they want to at least throttle that purge back by any means they can.
