because the banks would not accept the approximate real price
They can't. If the assets were sold at market values, the banks would go bust.
Could we please just nationalize them and stop fucking around?
4. To keep people in their homes and curb the housing crisis, Treasury will work with the Federal Reserve to commit $50 billion to reduce monthly payments and establish loan modification guidelines for government and private programs. The Financial Stability plan will also require all firms receiving federal funds participate in foreclosure mitigation plans to stem the housing crisis.
Why not do what Obama proposed yesterday and pass a bill in Congress granting bankruptcy court judges cram-down power? That way, the banksters and the housing gamblers both take a hit.
Could we please, oh please, stop pouring renters' tax dollars into schemes to "rescue" homeowners? Everybody should have the right to a roof over his or her head, but nobody's entitled to ownership of a house. Conservatives want live babies so they can raise them to be dead soldiers. - George Carlin
the banks would go bust.
For sure. That's why I called the assets a figleaf.
I'll note that the conditions that they placed on the banks bear a striking similarity to the conditions in my October Beautiful Financial Rescue Plan ... but rather than 50:50 between financing Baker's Own to Rent plan for mortgages under water and the Wall Street bail out, and the Wall Street bail out being 50:50 Preferred Shares and acquisition of toxic debt with convertible warrants on the realized losses, its much less than that in a doomed to fail plan to fix the foreclosure crisis, and there is no tie between the sale of Toxic Assets and the purchase of Senior Preferred shares in banks. I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.
