DougM

Hedge Funds Threaten to Block Mortgage Modifications

If judges get the ability to cram down mortgage balances in bankruptcy courts, what do you think banks will do in light of this new reality? Don't you think mortgage interest rates will be raised to compensate for this additional risk? This short-sighted move would be a victory for everyone who bought an overpriced house they couldn't afford, but it will be a blow to everyone who's still renting, and generations of future home buyers.

Global Cardiac Arrest

I agree with Jason. To cure the heart attack, it's time for bypass surgery. Central banks should bypass the banks and step into the CP and muni paper markets directly.