What happens when these business fail to pay for these generous loans? If I fail to pay my mortgage, the Bank from whom I borrowed money will most certainly take it over.
I understand they don’t have any seats or votes, the public wouldn’t accept that. But what will happen when they fail? Government should always get the heck out of the way, a better faster more improved business will take over. Just a free market fact.
Look I never said I agreed with any of this, just reporting what I heard and know to be true. I prefer the preferred stock to buying toxic mortgage paper, and I’ll tell you why. The government has never handled paper that it didn’t make a huge disfunctional beauracracy and a mess of it.
At least the Preferred Stock, when the market price goes up enough, it may make a profit when selling it off slowly. The one thing about stock purchases is that you need to be willing to hold five years, if it’s slow to return. And with that much invested it will have to be sold off in small amounts, so as not to cause a big problem later, or put fear in market with a big sale.
If they fail, we lose, and I know free market principles. My comments have nothing to do with agreeing or disagreeing, just answering the question with facts..that’s all.