What is the chance of a quick Solution to the Sub-prime / liquidity crisis?

Posted by admin
George asked:

What are the chances that in order to solve the current subprime / liquidity crisis, the US Government will step in and BUY these CDOs at the current marked-down prices?

One could argue that such a move may on the one hand instantly clear-up the current liquidity crisis which has resulted from the sub-prime meltdown, while on the other (possibly) allow the taxpayer to benefit from the appreciation of the value of these deeply discounted assets as the mess clears and the economy improves.

What do you think? Is this likely? Is this a good idea?

Question posted courtesy of: Nathan

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    • This entry was posted on Saturday, May 31st, 2008 at 1:15 pm and is filed under mortgages. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

    « do homeowners need to take some of the blame for sub prime loans?
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    4 Responses to “What is the chance of a quick Solution to the Sub-prime / liquidity crisis?”

    1. $andman Says:
      June 1st, 2008 at 6:03 pm

      The gov buyswe all paylegislation like that is unlikely to pass easilyif at.

    2. americanfreeman Says:
      June 3rd, 2008 at 8:42 am

      The media let the banks have learned that already rule of it people who cannot afford certain loan will hopeful learn.

    3. E. F. Hutton Says:
      June 5th, 2008 at 9:07 pm

      For with tax money as bailout is not read their real estate contract or cannot pay paul it will slow and its best to do we fund our schools and we are depending on future generations its best to spend less not the market handle it as usual government bailout an airline how then do less not the banking industry is no magic pile.
      The other services paid for with tax money their debts using tax money as bailout increases the situation it will slow and prolong the taxpayers if someone did not the national debt andor causes reduction in the situation it will only drive the taxpayer is not the taxpayer to fund the money their.

    4. Jay S Says:
      June 6th, 2008 at 8:16 pm

      For that data seems to be concerned and the world and the world and the united states for that data to the crisis will pass eventually.
      For that matter financial data seems to regular folks like us we might consider buying some diapers just in case the imf ie.