So investors should be happy getting a negative return because of all the defaults? This is a win-win if someone is actually able to pay off his loan somehow.
On casual review..., possibly. In actuality this whole "bailout" furor merely is a vain attempt to "kick the problem down the road" (hint..., past election time)!
The economic "Piper" WILL be paid, in time!
For the folks who own the tranche covering the principal, perhaps, but for the folks who bought the interest based tranches, it certainly isn't a win.