US Government considering paying people's mortgages

[HappySqurriel]

NJ5 said:

nordlead said:

Honestly, people should be evicted form their homes, they can always move into apartments, so no big loss there, they still have shelter. 

Here is why the government isn't letting that happen:

“It is well understood that the four major banks would likely need an additional capital injection should they be forced to mark the second-lien mortgages on their balance sheets to a realistic value,” Greenwich Financial’s Frey said.

http://www.bloomberg.com/apps/news?pid=20601087&sid=apwrXlpuvZo0

In other words... the four major American banks would go bankrupt if they were using realistic accounting practices.

 

Wasn't it Avinash_Tyagi who was arguing a couple of days ago that a couple of percentage points on unemployment, or a small increase in foreclosure rate wouldn't be able to bankrupt the big banks? Yeah, sometimes I'm not so happy about being right