Where is the bottom ?

Somehow guarantee those mortgages and you guarantee those securities. The outstanding issue is that some percentage, maybe 10-15%, cannot and never could pay for those mortgages and never should have even been considered for them. Those should default and then you can start paying the bankers.

 

The deal with the MBS is cash flows. Investors bought expected cash flows. If you change the underlying mortgages the cash flows change. I'd imagine that would open up a ton of legal liability. It's going to be complicated no matter what eventually gets done. Anyway, didn't it come out on the news that many of the "redone" mortgages earlier this year defaulted again anyway?

 

Many due to layoffs and other things, not just too much house. Not all of those loans are subprime.

 

The automatic buys in the index funds. It drives the price up regardless of the market. It's like a hedge against a plunge, I hope....

 

Obama's so called stimulus package is sending the market to the tomb. I guess the smart people know that to pay for this is going to require a massive tax increase that will cripple investment.

 

Obama's fault the rich dug their own grave and are taking everyone with them.