US Government considering paying people's mortgages

[nordlead]

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 honest accounting practices. The banking system is still a bomb waiting to explode.

of course, but to the average american, it is because they don't want to lose their home, not because the bank will lose money.

Honestly, banks made stupid and risky investments, and sometimes you lose. They lost this time, and they should be forced to follow the normal rules of an economy. As the banks went under, other banks would buy up the loans and take over, either that, or it would hit hard, a lot of people would lose money, but hey, we wouldn't be doing this sinking slowly crap.