I have said over and over again is that the cure is to let the market go through what it needs to go through without and federal or state intervention at any level. Furthermore I have also said many a time that my worst fear is that the issue will be politicized and that continues to be my worst fear.
“CURE: Massive layoff of enablers and accountants who mark-to-myth instead of mark-to-ten-cents-on-the-dollar valuations. Afterward, intense regulation and oversight of those who remain on the job.”
So who lays off who? Should the lenders lay off the loan processors and underwriting groups? Or should all the appraisers be fired and then rehired? Perhaps every mortgage broker should be fired by who? Their boss? How about these accountants that you mentioned? Specifically which accountant? Should everyone and Moodys and S&P be fired? Should ever realtor working at Prudential, Coldwell Banker etc be laid off?
Is the intense regulation and oversight you mentioned going to be a federal program? State program? SEC? Homeland security?
Nancy I don’t have a quick logical cure because the the problem is so massive. I don’t like to just make blanket statements, if you read any of my posts they are all made in a cautious manner because that is how I work. I don’t know the quick fix to any of this but I know what is not the quick fix which is any intervention by politicians as well as taxpayer or non taxpayer funding to help out distressed homeowners.
Short of that I think the market correcting on it’s own will take care many (but not all of the issues) that contributed to the problem.
