tag:blogger.com,1999:blog-3620474884501533030.post3463274768164508123..comments2023-06-05T06:30:25.429-07:00Comments on Rhetorical Wasteland: Can't. Stop. Laughing.Unknownnoreply@blogger.comBlogger3125tag:blogger.com,1999:blog-3620474884501533030.post-40801121713567962792008-09-21T12:13:00.000-07:002008-09-21T12:13:00.000-07:00Apparently my new political comments policy needs ...Apparently my new political comments policy needs to be expanded to economics... and banning talking points.<BR/><BR/>re: the claim that this will somehow make the government money, or that this is a temporary thing, I have seen no evidence that this is true. As economist Duncan Black has pointed out, these are fundamentally bad loans. Waiting a few years isn't necessarily going to solve anything.<BR/><BR/>And, as Digby has pointed out, this is the same group of folks who claimed the Iraq war would pay for itself.<BR/><BR/>McCain? Reform Wall Street? What... aw, fuck it. Comment deleted.Dennishttps://www.blogger.com/profile/05685035273589091992noreply@blogger.comtag:blogger.com,1999:blog-3620474884501533030.post-41726555291022422482008-09-20T07:49:00.000-07:002008-09-20T07:49:00.000-07:00Actually, that was done also. When the government...Actually, that was done also. When the government took over freddie and fannie, they are taking on those faulty or other such mortgages. As a government agency, they can hold on to those mortgages indefinitly. A bank would have to sell them to recoup money for the outstanding loans. As the banks unload millions of properties at the same time, and no one is buying, the prices collapse. Since the government can hold those loans, the prices are less likely to collapse. As the price recover over the next few years, the government can start releasing the homes out into the market and recover the money.<BR/><BR/>The bailout of AIG can do the same thing, but with insurance added to the mix. They control the company, but also set insurance rates and regulations. They can stack the deck to win. The investment has already doubled in the last couple days.<BR/><BR/>When the government assisted with the LTCM bailout in 1988, those companies were buying the positions at rock bottom prices. Over the next few years, they made a killing. Most of these bailouts, while in theory put the taxpayer at risk, it would be unlikely to happen.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3620474884501533030.post-67438998456940266272008-09-19T13:11:00.000-07:002008-09-19T13:11:00.000-07:00This comment has been removed by a blog administrator.Anonymousnoreply@blogger.com