I'm trying to make sense out of the "McCain HOME Plan" wherein, as I understand it, the government (we) will buy up toxic mortgages and write them down to the market value of the property. Will we be buying those mortgages at face value? If so, isn't this primarily another bailout for bad lending practices? If we will be buying them at market--isn't that exactly what is happening now, when secondary market bottom fishers buy up the toxic debt at distress prices and undertake to do the workout themselves?
[For clarification: I think "secondary market bottom fishing" is an honorable profession, and I hope we are seeing lot of it--would go a long way to putting this problem behind us, and without more taxpayer frontloading.]
Update: DeLong says it's a full frontal, and he is not impressed.
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