[Pen-l] proposed bail-out

["Jim Devine" <jdevine03@xxxxxxxxx>]

the US government is now talking about buying up all the banks' toxic
debt (sort of paralleling the Resolution Trust folks' actions at the
end of the S&L melt-down) and the finance community is going wild with
happiness. There's some talk that the government will actually make a
profit on the deal! However:

1) making a profit rules out any relief for the mortgage-borrowers
(remember them?) and

2) if housing prices continue to fall, the amount of toxic debt will
continue to increase.

Please advise,

-- 
Jim Devine / "Nobody told me there'd be days like these / Strange days
indeed -- most peculiar, mama." -- JL.
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