[quote=murf2222]Did I hear correctly today that the reason for the 400+ point day on Wall St. is that the government is going to absorb a lot of the banks foreclosure debt?
If this is true then how is this going to affect the REO inventories?
Murf2222[/quote]
I figure that they will do what I would feel to be the most unjust to responsible people.
First, they will buy all of the securities from institutions such as Washington Mutual. Then, when people say they can’t afford the mortgage, instead of foreclosing, because the government could never do that, they will write down the principal owed to whatever the borrower can afford.
