Forum Administrator RC Colas® & Moon Pies®
Date registered: Oct 2006
Vehicle: 1981 380SL 151K: 2001 E320 4Matic Estate 147K: 2008 E350 Sport 4Matic 120K: 2005 S500 116K
Location: The Land of Pleasant Living
Mentioned: 13 Post(s)
Quoted: 1131 Post(s)
Ultimately, the money will need to be used to guarantee that speculators (that's what they are after all) who will buy this 'bad' debt will not lose money if the homeowners eventually default. If there is not a widespread default, everyone makes out ok. If things go south, Uncle Sam picks up the tab.
It's the only thing that can stop this segment of mortgages from dropping to zero market value.
Quis custodiet ipsos custodes?