http://baconsrebellion.com/2009/03/03/allow-toxic-assets-to-be-sold-by-banks/ Thu, 11 Mar 2010 14:26:21 -0700 http://wordpress.org/?v=2.8.5 hourly 1 http://baconsrebellion.com/2009/03/03/allow-toxic-assets-to-be-sold-by-banks/comment-page-1/#comment-521 JR Wed, 04 Mar 2009 12:23:33 +0000 http://baconsrebellion.com/?p=390#comment-521 It doesn't address the key issue, which is the basic uncertainty surrounding the collateral behind the "toxic assets". Why not just do a "reset" and declare the "toxic" paper null and void? I saw where current estimates are that significantly more than half the subprime mortgages lumped into these instruments are expected to not be repaid. So just eliminate the uncertainty, while giving the banks some leeway on capital requirements and time to adjust to the reset. It doesn’t address the key issue, which is the basic uncertainty surrounding the collateral behind the “toxic assets”. Why not just do a “reset” and declare the “toxic” paper null and void? I saw where current estimates are that significantly more than half the subprime mortgages lumped into these instruments are expected to not be repaid. So just eliminate the uncertainty, while giving the banks some leeway on capital requirements and time to adjust to the reset.

]]> http://baconsrebellion.com/2009/03/03/allow-toxic-assets-to-be-sold-by-banks/comment-page-1/#comment-508 James Tue, 03 Mar 2009 19:16:09 +0000 http://baconsrebellion.com/?p=390#comment-508 This will never happen. It makes too much sense. This will never happen. It makes too much sense.

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