So they are gonna take the houses by eminant domain, from the owner I assume, or better known here as the FB. The bank will immediatly have to write off the difference between what they are owed, and whatever the government gives them. 30-50% of bank assets (of the newer, more troubled variety that is. I have a feeling that 150k loan from 1985 is rather safe, even now) suddenly go poof? Are our banks strong enough to take those kinda hits? Arn’t we trying to save the banking industry already? Wasnt the original point of the TARP to save the banking industry? How ironic would it be if they used banking industry bailout money to bring down the banks!
