Posted by dallahoo on 15th of Sep 2008 at 02:05 pm
and if they lose their jobs and cannot make the payment, what
happens to the promise, do they go to jail, will they be given
another 100k, 0 coupon bond?
and who pays the value of the bond at maturity? are we assuming
that at maturity house prices are higher, lower, unchanged?
Posted by pepperwu on 15th of Sep 2008 at 02:20 pm
the only way to fix it is to fix the assets at the base.
in any case, its better bailing out the homeowners directly (who
were stupid enough to be sold the mortgages) rather than
bailing out wall street crooks. The whole problem here is the
administration has sat on its backside and has not taken any
innovative or decisive action.
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and if they lose their
Help out homeowners to solve the problem
Posted by dallahoo on 15th of Sep 2008 at 02:05 pm
and if they lose their jobs and cannot make the payment, what happens to the promise, do they go to jail, will they be given another 100k, 0 coupon bond?
and who pays the value of the bond at maturity? are we assuming that at maturity house prices are higher, lower, unchanged?
the only way to fix
Posted by pepperwu on 15th of Sep 2008 at 02:20 pm
the only way to fix it is to fix the assets at the base. in any case, its better bailing out the homeowners directly (who were stupid enough to be sold the mortgages) rather than bailing out wall street crooks. The whole problem here is the administration has sat on its backside and has not taken any innovative or decisive action.