mikeely

Bailout Should Be A Windfall For Taxpayers - Barron's

Interesting comments above by the author is correct. The govt *should* make money on this deal, IF they do the rescue plan correctly. The mortgages have value, many people still pay their monthly mortgage on time and in full. True some (many) people aren't doing that right now. But if the gov't is buying the mortgage pools at a fraction of par, then they foreclosures will be absorbed for a long time before the pools far below the value that they paid. Plus the govt. will own and be able to resell the foreclosed houses at appropriate prices to better qualified buyers (and hopefully before that point, restructure the cost basis and mortgage payments amounts so the homeowners can stay in their houses).
IF the govt lowballs the banks for the mortgage pools, then hedge funds and vultures will come in and buy the mortgages and the market will open up again. The sooner the govt starts the ball rolling, the sooner the mortgage market will be able to stand on it's own again. As of now, NO ONE wants to even offer to buy these pools until the govt passes the bill since there is so much uncertainty around.
I don't need to know partial differential equations to know that if I buy assets worth .75 for .50 then it's worth buying. The key is to pay the right amount for the assets and the profits will come, leading to market players returning to the market.
Learn the details ripping the govt, Rep. or Dems. No plan is perfect but this one is good. The misinformation out there is horrible though. Study up.

CREDO Petroleum's Competitive Advantage

Is this 'report' being recycled from 3 years ago? Please update...

CREDO Petroleum's Competitive Advantage

Is this 'report' being recycled from 3 years ago? Please update...