Bailout
From:
Chuck Repke
Date:
Sep 23 18:08 UTC
Short link
Well, it all depends on what the $700,000,000,000 buys.
If what the Fed's are doing is actually buying the mortgages on a lot of
foreclosed properties at a discounted price, then we (all of us tax payers) are
in the real estate investment game and we own a bunch of property (including
Minnesota...to keep this MN focused). If HUD actually buys them at a decent
discount then this has a potential to be a good deal for taxpayers.
Let's say that the Fed's buy ten million mortgages at an average price of
$70,000. Believe me there are all sorts of bank owned property that is on the
market today at less then half of that $70,000 figure and there are plenty of
houses that are being foreclosed that are well above that.
For those that are in the redemption process the potential exists to then
renegotiate the mortgages with the homeowners based on current market value,
which might be more than what the Fed bought the paper for but much less than
what the owners had in debt.
For those that have gone vacant the potential exists for the Fed's to
develop a program where local HRA's or municipal governments could work with
the
Fed to determine which properties could be repaired and put back on the market
and what should be demo'ed.
So, its only a "bailout" if the Fed buys nothing or doesn't get a deep
enough discount on the paper. If the Fed gets the paper cheep enough it might
be
in the position that over time it only loses a few billion rather than the
700 billion it appears to be losing when people talk about bailouts.
Just My Opinion Not Those Of My Employers Past Present Or Future
Chuck Repke
Saint Paul
In a message dated 9/23/2008 12:39:26 P.M. Central Daylight Time,
<email obscured> writes:
Does anyone have any thoughts about the $700,000,000 bailout of the Wall
Street? I get the felling I am being hustled by a high-class panhandler
in the parking lot of a grocery store. What does the failure have to do
with the $1,000,000,000,000 (thats a thousand trillion, yes, that big)
derivatives market that may go up in smoke?
I don't like being hustled by panhandlers, no matter what their size.
Mike Schoenberg
MacGroveland, St. Paul
Info about Mike Schoenberg: http://forums.e-democracy.org/p/mikeschoenberg
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