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To: Prokopton
We know what the bleeding problem is. There is a $500 billion unallocated financial loss on US residential real estate careening around the financial system, and everyone is playing hot potato trying to drop it steaming in someone else's lap. Which might be amusing, except that it has already done 5 times that much damage, and it is looking to go nuclear and raise that by another factor of 10 by the end of the month.

Allocate the loss. Ignore the question of blame. Ignore who gets hurt. Just take the hit and put it behind all concerned. Burn down whatever is insolvant and remove anyone running any institution that is, fine no problem, nobody cares. But focus entirely on limited the size of the overall hit, by getting it over with, and stop playing spin games to try to get someone else to take it for you. No one walks away from the hit this size untouched. It is metaphyically impossible, and blame has nothing to do with that fact. It is a mere law of economics. You might as sensibly try arguing with gravity after walking off a cliff, claiming you don't deserve to fall.

26 posted on 09/15/2008 9:19:39 PM PDT by JasonC
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To: JasonC; Prokopton
"Allocate the loss. Ignore the question of blame. Ignore who gets hurt. Just take the hit and put it behind all concerned."

Can't we all get along...

Problems have causes, and until the cause is properly addressed, there will be no solution, just a deferral to the deja-vu club.

30 posted on 09/15/2008 9:24:21 PM PDT by editor-surveyor ( If Obama had Palin's resume and experience Obama would be qualified to be VP too.)
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To: JasonC

The financial loss seems to have mostly (the bulk of it) landed in Fannie and Freddy, as they are holding the paper. Therefore it has landed on the Feds.

The rest of the losses are hurting elsewhere because of the leverage problems, but they seem to be getting absorbed through equity losses.


59 posted on 09/15/2008 10:43:02 PM PDT by buwaya
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To: JasonC
There is a $500 billion unallocated financial loss on US residential real estate careening around the financial system, and everyone is playing hot potato trying to drop it steaming in someone else's lap.

Fear not - I've already taken my $30,000 hit. The loss will allocate itself, just as the gains did. Some fared better than others during the exuberant rise, and some will fare better than others during the fall.

Regardless of the final solution, blame should be sought and accurately assigned so that the methodology of creating this mess (and yes, it's more complicated than most would think) can be chronicled and avoided in the future. And, perhaps those who did the most to cause the problems might be brought to justice, up to and including incarceration. I personally wouldn't mind seeing a few prominent democrats taking the perp walk.

85 posted on 09/16/2008 3:41:05 PM PDT by meyer (Go, Sarah, Go!!)
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