Re: Bailout-House prices will not come back.

[edhopper]

It seems the whole premise of this bailout is to but these mortgages and MBSs and CDOs at a value that will make the banks solvent i.e. what they owe and not what they are now worth. Then as time goes on and the US sells them we will get our money back. This would only work if house prices re-inflate to bubble prices.
They are not. House prices will continue to decline and bottom out back to historic levels. Which is aroun 50% from the top.
These papers will remain worthless and we will never recover our money. Has Bernake and Paulsen ever taken Econ 101?
It is a plan doomed to fail.

[Tierra_y_Libertad]

1. But..but..it shows that the politicians are doing SOMETHING!!

No matter how stupid and transparent it may be.

[lapfog_1]

2. Wrong.

After the resulting inflationary pressures due to the need to cover our debt obligations, home prices will rise! We will get our money back in about 5 to 10 years!

:sarcasm:

[Holly_Hobby]

3. So it's time to petition your county to reduce your property taxes n/t

[edhopper]

4. Good luck

with that!

[Holly_Hobby]

5. LOL, no kidding n/t

[Hangingon]

6. Amen!

[Hangingon]

7. Amen !