Tony101

Armageddon Postponed

Avenger,

It is not fair that taxpayers are being forced to absorb bad debts from banks' wrong bets without reaping profits. The financials made billion of dollars creating toxic mortgage derivatives and now they can offload these to taxpayers and go onto make money again? Aren't they the crooks who caused the recession we are seeing now and we are bailing them out to save our economy? I do not have problems with bailouts, but if we are going to bail them out I expect the bank to pay for their reckless bets too.

The government should set out the auction facility as a debt facility. They will take all the mortgage backed securities at a discounted value as collateral to handout loans that must be repaid within 10 years. Taxpayers are exposed to minimal risks this way and at the same time it helps to achieve the goal of injecting liquidity. Its just ridiculous that we are buying those worthless papers with cash knowing that the housing market will go down further.