Wait for the Faces of 'Victims'

Reader comment on: Wait for the Faces of 'Victims'

Submitted by sean (United States), Apr 20, 2010 01:10

Yet Paulson did not own the mortgages and had no ability to trigger their default. I agree with your point that had the mortgages remained with a local bank there would hvae been a much higher liklihood that they would not have defaulted, but i think without the securitization process there would have been about a 0% chance that the mortgage would have been originated in the first place.

As far as a plan goes to keep homeowners in their homes, very large tax cuts would have made a big difference in many but not all cases. Instead the administration chose to deal with the symptom, the bad assets on the banks books, by adding capital to the banks instead of the cause - defaults from declining incomes and job losses. Keep incomes up and people make payments and bank assets stay current and performing.

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