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I still think this is way over blown. There are 14 trillion in GOOD loans in which they are making money on. 2 trillion are bad...but they are BACKED BY REAL PROPERTY, they are not worthless. OK, I grant you they are not worth what they were but even discounted at 50% would be conservative. They are not worthless as they are being written off as. Did they just leverage the bad loans? if not they leveraged the good ones too.
IMO (clearly I am no economist) the real problem started with the 110% financing with no docs...that was insane. I never understood that logic...but then again I am no mortgage broker. I can tell you where I live every illegal on this island jumped on that...the good thing this event has flushed them out like bad water in a clogged toilet.
Frankly I am not a fan of the bail out. If I go to Las Vegas and loose who bails me out? I don't care about the fall out. Let them take it in the ass. If it caves in the entire global markets so be it, as long as they loose their ass. That is how I feel.
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