Ping
(sigh)
Milstein wants to socialize private risk by converting these subprime and non-conforming mortgage bonds into taxpayer-guaranteed bonds. You see, we already have the system Milstein proposes. It’s called Fannie Mae and Freddie Mac. Now, these scared and screwed financiers want to extend that to cover all their bad subprime and other non-conforming mortgage bets not already guaranteed by the government. Sure…. people should just perpetuate this credit bubble longer and carry life-time mortgages and become life-time debt slaves, so long as it saves the banks. If you didn’t a buy house, dudn’t matter because you’re paying taxes to guarantee principal on someone else’s house so that bond investors don’t get screwed.
* * * People, you need to get off your lazy butts and do something as these proposals are nothing short of class warfare. I don’t care if you write to the New York Times or picket your congressman’s office,* . . . These type of elitist actions demand full attention, more so than the UAE ports deal and the illegal immigration bill that infuriated so many Americans. Milstein’s solution makes us all debt slaves whether or not we bought a house, and it continues the culture of debt and credit growth that has undermined our society.