Stocks Surge on Bank Plan for Toxic Assets

[TheRealMafoo]

ssj12 said:

TheRealMafoo said:

ssj12 said:
i think this will benefit a lot of people. mainly the citizens of the US that have the mortgages.

 

It doesn't do anything for those people. They still pay there mortgage just the same. If they don't, the get foreclosed on, just the same.

The only thing that will change for them, is who they write the payment too.

Who this helps, is the banks. Who it hurts, is everyone else.

 

But the government will probably be able to adjust the mortgages to affordable and balanced rates making it so that people wont have to foreclose at all.

 

The government is not running the mortgages. The private investment firm is. They might have reason to do what you say, but I suspect will only do so if it servers there interest.

Here is a good read on a economists vision (same as mine actually).

http://ac360.blogs.cnn.com/2009/03/23/will-the-geithner-plan-work/