madasiwannabe

Can the Banking System Handle Huge New Write-Downs?

What about my loan. I put 40% down and have a debt ratio below 20%. Sure I screwed up by living well within my means and paying my bills on time, but my property value has dropped 15% too. That drop is before all of my neighbors get their mortgages slashed and their new deals become my comps. Under the bailout deal it seems like I get to pay twice; first through my tax dollars and then again with the further depreciation of my property value.

What gets me is if we let them default, I lose anyways. The banks will auction off the properties at a huge discount and once again their sales become my comps. Where's the bill that offset my losses when the irresponsible borrowers and lenders get done destroying my future?

Paulson in a State of Panic

AMEN!!! Conservatorship doesn't give Paulson the right to wipe out the GSE's to save the other mortgage holders. The laws are very specific about the charter of a conservator, and unless there's more to the purchases that secures the current company value, this goes against that charter.

We all know the takeover had nothing to do with the solvency of the GSE's. If it did, why haven't they used any of the 200 Billion to stabilize the GSE's. Paulson knew all along that at some point he would use the GSE's to buy up toxic assets to clean the books of his buddies. I find it interesting that every time Goldman Sachs or Morgan Stanley stocks take a dive, Paulson comes up with another plan. Time to get the FBI and supreme court involved to stop this madness.