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  • Options Trader Wrong-Way Weekly Wrap-Up: Party Like It's 1999 [View article]
    You missed an extra step on the clean up of the mortgage mess. The government gives the amount by which each homeowner is underwater or over-leveraged to the homeowner who is required in turn to pay it to the bank who reduce the balance on the mortgage accordingly.

    But then the government requires the bank to issue it shares for the amount of money involved. At that point the bank is well-capitalized and shareholders have been insanely diluted, leaving the loss exactly where it belongs.
    Nov 08 14:53 pm |Rating: +9 -2
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