Reply #3: The credit default swaps and derivatives ARE the problem, all of it. [View All]

[Waiting For Everyman]

The mortgage-backed securities (also derivatives) are why loans can not be modified. Otherwise, a lot of foreclosures could've been prevented before it got bad. It STILL can't be done. All b/c these unpayable "things", so-called assets, are standing in the way. They are worthless, and there are HUNDREDS of TRILLIONS of them.

I'm glad the Japanese said that, b/c nationalizing the banks is obviously the only thing that can be done. That, and write off this worthless paper, and refi the debts at lower, payable interest.

They need to get AHEAD of this wave by doing that, instead of reacting to what has already happened piecemeal. Get a floor under the RE market NOW, or more of the same will happen. There's no way to do that except by refi'ing or modifiying in a big way. And fast.

Nationalize the banks and do it through direct funding.