|But I do have an idea: take all the mortgages owned by banks and other institutions and calibrate their values to current market value. Then recalculate the loan amounts.
While we're at it, take all those bonuses or even half and pour them into those negative equity mortgages. Even if this mortgage meltdown had NOTHING TO DO with banks and their greedy business models, why should any taxpayer be responsible for this mess (note: rhetorical). The banks are businesses and their risk should be covered by them. I mean, this implementation of privatized profit and socialized loss is mind boggling.
I mean, the math seems straight forward enough: no bonuses until the equity mess is cleared up... the only people hurting would be those few thousand bankers.
I'd love to be the new sheriff in town and implement just those two things... that'd be fun, don't you think?
Hey, I'd like to discuss more than middle class taxes with my government and those who brokered this um deal...
Just when you think it can't get any more absurd, you realize oh yeah... the universe isn't the only thing that's infinite. Human greed and stupidity apparently are as endless.
I tend to agree with David Dayden's analysis of the settlement. A bit follows below:
The bulk of the money, around $17 billion, will go to principal reduction credits for troubled borrowers.
But even this $35-$40 billion number, which is at best a guess since the direction of the principal reduction is mostly at the discretion of the banks, pales in comparison to the negative equity in the country, which sits at $700 billion. And the banks have three years to implement the principal reductions, drawing out the loss on their books
hmmmmmm, where have i seen that 700 billion figure before? oh yes, here it is, one of the greatest hits of 2008: Administration Is Seeking $700 Billion for Wall Street.