[T]he problem is that lots of bad loans were made, lots of people made highly leveraged investments in those bad loans, and still more people bet on those loans by insuring them. The loans are bad. The mortgages are not going to be repaid in full. Housing prices are not going to magically shoot up 50% over the next 6 months. People gambled and lost and now the Democrats are racing to bail them all out.
When you hear member of Congress on TV enthusiastically talking about taking over these illiquid assets and selling them, remember: They're worthless paper.
The houses weren't worth what the mortgage documents said.
The homeowners can't pay the mortgages.
When the government takes over the properties, they're going to sold in a fire sale as real estate prices tank.
Republican shell game. Democrats fall for it every time.
Posts
No comments:
Post a Comment