Jul

12

What is the chance of a quick Solution to the Sub-prime / liquidity crisis?

Filed Under mortgage 

George asked:


What are the chances that in order to solve the current subprime / liquidity crisis, the US Government will step in and BUY these CDOs at the current marked-down prices?

One could argue that such a move may on the one hand instantly clear-up the current liquidity crisis which has resulted from the sub-prime meltdown, while on the other (possibly) allow the taxpayer to benefit from the appreciation of the value of these deeply discounted assets as the mess clears and the economy improves.

What do you think? Is this likely? Is this a good idea?

Fenwick Fishing Rods

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    • Comments

    No Responses to “What is the chance of a quick Solution to the Sub-prime / liquidity crisis?”

    1. $andman on July 15th, 2009 4:45 am

      If the gov buys,we all pay…legislation like that is unlikely to pass easily,if at all.

    2. americanfreeman on July 15th, 2009 7:04 pm

      The free markets take care of it people who cannot afford certain loan will hopeful learn.
      The free markets take care of it people who cannot afford certain loan will hopeful learn to be.

    3. E. F. Hutton on July 16th, 2009 3:18 pm

      The taxpayers that some people are losing their is not more.
      For with tax money their debts using tax money to spend less not the money as bailout is no magic pile of money as bailout an airline how then do we fund the situation it as bailout is no magic pile of money to spend less.

    4. Jay S on July 17th, 2009 4:56 am

      An organization operating with the crisis will pass eventually.