1234987

Time to Exempt Mortgage Securities from Mark-to-Market Rules

Wall street, Hedge funds, Traders, and Investment house have made huge amounts of money packaging and selling these MBS, CDO's and like instruments. Banks & S&L's have been purchasing these so called investments to capitalize on greater returns. Now These same funds with huge amounts of $ are shorting the same
asset in order to buy them back @ 50 cents on the dollar or less.
Free market society. This is creating a huge profit potential for the ultimate purchaser or these instruments. Yes, some are bad debts
but you need to buy enough to average out the losses.
FMA or some other goverment backed fund should start buying these
instruments from the banks @ face value thus giving the banks liquidity and much needed capital to continue in business. Start regulating the mortgage business again and only purhase conforming fully documented loans. Create this fund in partnership with any institution selling CDO's or MBS into it. 50% government owned with the other 50% split among the selling institutions proportionatly.
All original funds will come from long term bonds issued by the Gov.
for 30 years. Every 5 years audit the fund & access profits or losses
amoungst the owners.