US Mortgage Crisis, Foreclosure and talk of a Government Bank Bail out. Continued

by JP

FeedTheVillage.com - Tips and Advice: US Mortgage Crisis, Foreclosure and talk of a Government Bank Bail out.

We have come to a crossroads and the options are much like that of having a bad cavity "Fix it now - pay the smaller price and bail it out" - even if you hate to do it OR wait until the tooth is infected and SUFFER MUCH MORE and PAY THE HIGHER PRICE!

Either way I can promise you the taxpayer will suffer the loss - The Questions now are only "When and How Much?"

It is in the short term & long term benefit of the taxpayer to minimize the deflation of those assets and BAIL IT OUT NOW!

If those assets are worthless AND are also introduced to the market for open sale the blow to EVERYONE will be two fold.

IF a plan is implemented that "bails out" the borrower, allows an opportunity to 'eventually' recoup the losses and payments are made to the 'entity', keeps homeowners in their homes and KEEPS these homes off the market my belief is that HAS to be done Post HASTE.

This really goes against everything I believe in a typical situation as I am a pure capitalist at heart and oppose Government involvement in markets and business in almost any and every form.

We, however, have already crossed that bridge with the initial involvement of Fannie and Freddie -

NOW that the mess has been made the ONLY way that I truly see to clean it up is a bail out that involves:

Loan Modification for the borrower, Purchase of HUGE LOAN POOLS (Hopefully with a Checks and Balance system) Perhaps a 1 time offer to the Lenders that have survived - "We will buy your loan pools on the following terms - Pay PAR and 1 A+ loan for Every C loan or worse in the pool", System to remove and prevent the Government from repeating the same mistakes INCLUDING a permanent withdrawal from involvement and purchasing loans on the secondary market.

Either that or prepare for the "Tent Cities" that will be developing shortly ala "The Great Depression" and the associated Crime, Illness, etc.