Jan VanDenBerg_

Wall Street Bailout: Congressional Cover-Up, or Sarbanes-Oxley?

Disaggregate the MBSs. Disaggregate the bad bonds.

The individual Deeds of Trust or Mortgages inside these ugly wraps are 95% fine.

It is the packaging, slapped on by Wall Street, which is destroying the value of these DoTs, which are a type of bond.

All the bonds need to be aggregated by a government entity -- collected from everyone who has one in exchange for something of value to their capital and accounting -- and laws passed to disaggregate the MSBs to leave the underlying mortgages.

These Mortgages, or DoTs are highly marketable.

The individual, underlying Deeds of Trust (Mortgages) could be readily valued using standard DoT valuing software now used by thousands of DoT traders and investors. Thousands of these are sold every month.

95% of them would price out and sell just fine.

You're getting your monthly payment. You will continue to. Your rate of return is competitive with any other investment. There is no problem with this asset.

Some of the remaining 5% would have to be "worked out" with the owner/occupier, giving them a new loan on better terms, and some could be sold to private investors who would foreclose on the property and manage it. I don't see any reason why the government should ever have to actually own any real estate.

The key is to get back onto the ground where the individual mortgages -- 95% of which are FINE thank you -- and the houses are.

Wall Street has created a mess, building something they don't understand and which doesn't work.

Let's not package mortgages. They are too diverse and need closer management.

Jan VanDenBerg