BlackyBlack

Geithner's Plan for Bad Assets: Part of a Master Program

This is the problem - if you wipe out this income stream (the mortgage obligations) you wipe out the payments on the securitization assets. You can't have your cake and eat it too. (You can't relieve the homeowner of the debt payments and still keep the income stream on your mortgage-backed assets.)

"We may assume that the mortgage debts are thereby wiped out. This is implicit in the USA where the only collateral for the mortgage is the value of the home. In other countries any remaining debt remains an obligation on the mortgagee, and in Japan that can be multi-generational!"

Thinking the Impossible: Could Bank of America Go to Zero?

It's all monopoly money.

Nationalize Citigroup and Bank of America

I think some of the above comments are protesting too much about this article. Something is smoking at BOA and Citigroup. We know the feds have said the won't let another big bank fail. So it's either nationalize or a new bailout. I'm not taking bets on either option, but I think a nice discussion of either is on the table. What's up with all the trolls lately coming out against negative discussions? It's not the shorts causing the problems.

No positions.