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Originally Posted by OrangeEmpire  Freak.... all you need to know is that government = failure..... |
I agree. The Federal Reserve is a farse and I'm not willing to give them and/or the Treasury unchecked control. That bill in it's past form as I understood, was going to make them "above the law". They would have have free reign to do as they choose. They could decide to call these mortgages due at any time since they would be above the court system.
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Originally Posted by BigPapaVol but the MBS stuff has a huge overhang to anyone with them because they have huge amounts of capital allocated to potential losses. That's why capital has gone so low in all these institutions.
Setting that debt aside will free up many of the bank balance sheets out there and allow them to operate and borrow themselves. |
I don't disagree with what you are saying. I just disagree with the current plan to accomplish this.
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Originally Posted by droski yup it's completely irrational, but there are so many of these things on the banks balance sheets and with the defaults all of this stuff is being sold at the same time. the banks already have a lot of this so they don't want more, so therefore there aren't enough buyers out there. you need someone like the treasury to come in with billions to create a floor. |
I'm still trying to understand where the billions (or trillions) as it may more likely be, is going to come from?
Again, I think there is a better way to solve this rather than giving more power to the goverment/fed/treasury.