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If most of the holders of MBSs written around the inflated real estate are foreign, especially is many of them were involved in creating the MBSs and/or the bubble, I think I know which I would choose were I a Spaniard. By writing down the value of the asset it becomes liquid again. Life can resume. Better yet if the financial sector took the hit. The part of the hit that is to pension firms and/or small holders could be partly compensated, though writing down the value to something close to actual market value would certainly help all Spanish holders of underwater mortgages.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Fri Feb 17th, 2012 at 09:39:54 PM EST
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