cjct

The Hedge Fund of America, LP

Worst case scenario for Treasury is it buys the MBS's and the homeowners default on the mortages. Even should that occur on a large scale, there is still underlying (although deteriorated) value in the house and the land it sits on. Certainly the government could auction off this property to recover 20-30 cent son the dollar which is basically what the MBS's are likely to be purchased for in the first place.

U.S. Government Worse Than Lehman?

Oh and no, you are not reading that right that USG debt has at any time been more costly to insure than that of Lehman Bros. I want you to stop and think for 10 seconds...the sovereign debt of the United States was at any time more risky than that of an I-Bank...really...even if the article said that, do you really believe everything you read...???

U.S. Government Worse Than Lehman?

I don't mean to repeat an Ari Gold line, but "EVERYBODY STOP." I want everybody who doesn't understand credit derivatives, securitized products, the history of the RTC, and the mechanics of a reverse auction to cease and desist with these inane postings on how awful the plan is...Trust me your uniformed opinions are being fully expressed in all their idiocy by the multitude of morons (on both sides of the aisle) that are parading around Congress excited at the opportunity to make a name for themself during this crisis.