I was sure of this now. Looking at what Paulson said today and the housing bill text in more details, the sense I have is that it's just a matter of time before mortgage loans are going to "survive a bankruptcy".
You see, in a typical blackhole, they said when you fell into one, just before you get shredded into your tiny little atoms they said light waves got bent so hard you can see your own ass looking forward.
This is what would happen since they have decided that zimbabwe is probably not a good economic model to follow.
So they will entrap every "recent" borrower, enact that covered bond, use a combination of deep subordinate support and FDIC, but the scheme can only work when the backstop can garnish money from the borrower should the event of default happens.
I guess if you NEED to default, it's probably best to do so now. If things are really retroactive, then it's useless but you can say you have tried your best anyway.
The right enemy
5 years ago