TheRealMafoo on 02 October 2008
Oh, and this price fixing thing is two fold here. Not only will they try and stabilize the home market, they are wanting to by mortgage securities that banks cant sell. They can't sell them because they are not worth anything.
If they are not worth anything, then why are we buying them? I know the answer in principle, banks need capital short term, and the government can hold on to these things longer... bla bla bla...
It's a horrible idea. It's price fixing mortgage securities. I guess this famous line is true:
Those that don't understand history, are doomed to repeat it.
