David Ricardo

Read It and Weep for the USA

The plan should be to take over and dispose failed financial INSTITUTIONS, not to buy JUNK MORTGAGES from these institutions so they can go their merry way. This is a crucial difference between the RTC rescue and this proposal. This plan will save the jobs of the people who caused the mess, and leave the taxpayer stuck with bad mortgages. This plan will be exacerbated by Democrats' amendments to "keep people in their homes" so that it will be difficult to get much value out of the houses that underly the mortgages.
The ultimate result of this plan could be to drag the US treasury credit rating down to junk bond status, so we will be a Subprime Nation.