Quote:
Originally Posted by widebody911
http://www.cnn.com/2008/POLITICS/09/29/miron.bailout/index.html
The costs of the bailout, moreover, are almost certainly being understated. The administration's claim is that many mortgage assets are merely illiquid, not truly worthless, implying taxpayers will recoup much of their $700 billion.
If these assets are worth something, however, private parties should want to buy them, and they would do so if the owners would accept fair market value. Far more likely is that current owners have brushed under the rug how little their assets are worth.
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When it cost more to repair a house than the house can be sold for, or if it costs more to tear down a condemned structure than the resulting vacant lot will be worth, there is
no money to be made on the deal!
(Our government doesn't understand that -- the "bankers" pushing for the bailout do!)