Federal Government bails out AIG and now has its eye on the Banks and Banking System. It seems that the US Government, according to a CNNMoney.com online report, is "poised to establish a program to let banks get rid of mortgage-related assets that have been hard to value and harder to trade."
This is very interesting...sounds like the CDO problem???? Collateralized Debt Obligations? Sound familiar? It should, it was back in July 17, 2007 that I first talked about CDOs and why you should be worried.
Is this really what the Government should be doing? Is the government going to buy the foreclosed home next door to me and then do what with it? I am more than sure the government does not want to be holding on to these homes? They are going to move them and they can afford to take a loss on the resale of these home, heck after all they are foreclosed homes. These things should be a bargain and because people love a bargain, they will snatch them up and either drop property values even further or raise value as subdivisions are back to capacity? See where this is going?
While I am all for the Government backing off, I am also a proponent of stepping in when people will get hurt. This is what government should be all about. Let a business make an attempt at success or failure but let's not have government looming overhead and waiting for the first mistake so that they can intervene. Of course there are always exceptions, much like Enron or WorldCom, when the activities are more blatant and people will suffer, then by all means jump right in.
Let's trust the process enough to let it work. I would like to see how these organizations would have handled the recovery process without having the government to turn to.
Even then, when the time comes for the government to step in and take care of the people, please, let's not save someone from drowning by keeping them out of the pool.
In the "by the way" department: Time to change another channel....it was fun while it lasted. When you have to blog what you have posted someplace else, well, all I can say is that the $1000 Bagel has certainly gone stale for you.
Here are some Technorati Tags:
• Dave Guerra • Bailout • AIG • Banks • Banking System • CNNMoney.com • Trust the process • drowning man • Collateralized Debt Obligations • Economy • Foreclosure • Give to the American Red Cross • Hire A Hero
No comments:
Post a Comment