Government Buying Bad Debt

[pfblueprint]

Let us dispense with the pleasantries ... the government is just going to straight up buy the bad debt.

Stocks surge on report of entity for bad debt: Financial News - Yahoo! Finance

[sweeps]

Time for a drink.

[rooskers]

That is a blatant lie. You, me, and the rest of us taxpayers are going to but the bad debt while the CEO's and other major players in the industry take a nice vacation to spend their millions of dollars they earned getting the companies into the mess they are in. I am tired of hearing the word government bailout. It should say taxpayer bailout.

[tripods68]

I wonder how this new entity will dispose bad debts...? I imagine, they gonna try to sell debts to 3rd party to 4th party for a pennies. Those sold will be on added to the books as revenue stream for people that still holding their mortgages, then resold again and again... The cycle repeats itself until debts are eliminated.

[kork13]

So.... anyone taking bets on the likelihood that this could be a ploy to bring the markets up? My thought process:
1) This "announcement" is that it was "being considered".
2) Everyone is desperate for the markets to recover. They have done so today, taking a big step in a good direction.
3) Everyone realizes that such a setup would take time to set up something like this.... time, perhaps, to give the market to stabilize?
4) After the backlash of the Bear Sterns debacle, and even the (more reserved) resistance to AIG, does it really make sense that after such opposition to major bailouts short of critical necessity they would suddenly say "hey guys, let's just take on EVERYTHING bad, and it'll fix the problem! It's only a half-trillion dollars or so!"? ...... come on now, let's be serious.
5) This doesn't seem like a good idea, and one that outside of wall street will prove highly disfavorable...

THEREFORE, I'm giving 8:1 odds that this is not actually gonna happen, but the mere idea/possibility of it will benefit and help stabilize the market...perhaps (hopefully?) to the point that such a radical move would no longer even be needed.

So that's my story and i'm sticking to it. Applause and adoration aren't necessary. . . . . . . . . . . . . . . . . . . . . . . . . ........okay, just a little!