AuGod!

Mark to Market Myths

By mark-to-market I would argue that the underlying mortgage loans themselves which underly the "securities" be unwound from their securities' prison and that each mortgage be reassessed based on that or even 35% less than present market value of the homes and at reasonable rates of interest with encouragement for the borrower to remain engaged. The actual "securities" which suffer due to underlying defaults would then be expunged from the system unless they could be rewritten as "cream of the crap" then sold on into the market if and when there is one. Many though sadly not all of Main street America would then benefit. but homes with families would be saved from being kicked out to the curb and would live to contribute to the recovery instead of being mired in litigation and debt. To me that is a solution which is comprehensive and not selective. Major haircuts all around? You bet, but an investment in America means just that not just the banks who created this mess, greedy shareholders (mostly hedgefund vulture types) and institutional investors who are now holding the bag.