Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Anything which reduces the pressures on holders of distressed assets will help - interest rate reductions, interest payment moratoriums, tax credits for interest payments etc.  It won't, of course, help the most toxic asset holders, or help banks to make bigger profits.  C'est la vie!

Vote McCain for war without gain
by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Fri Sep 26th, 2008 at 08:15:09 AM EST
[ Parent ]
And it won't help the small guy who has a pension of former blue chip stocks.

Treating the disease is impossible without different basic political assumptions.


aspiring to genteel poverty

by edwin (eeeeeeee222222rrrrreeeeeaaaaadddddd@@@@yyyyaaaaaaa) on Fri Sep 26th, 2008 at 08:25:43 AM EST
[ Parent ]
A "Debt/Equity Swap" of mortgage loans into "Rental Pool" quasi REIT's will actually solve both problems.

For the Occupier, the "affordability" of reasonable index-linked house rentals means it's more likely that they can pay.

ie affordability = certainty.

For the Small Guy Investor, such property-based Units of index-linked rentals would provide a nice solid home for at least part of his pension portfolio.....

For the Occupier, it is a new "Rent to Buy" option where he can gradually acquire Units of rental values of land held by a "Custodian" (exactly as blue chip stocks are technically held by Custodians like State Street now) until the nominal income on his Units offsets the nominal rental due  in respect of his occupation.

ie he is "Paying it Forward".

And if times are hard, then Occupiers can pay rentals in saved Units, not $....

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Fri Sep 26th, 2008 at 08:55:01 AM EST
[ Parent ]


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