Originally posted by: GrGr
Originally posted by: heyheybooboo
Topic: Bush Unveils Mortgage Relief
Topic Summary: Helps only scumbag investors bought these securities
Harsh, but fixed
It is the entire system this measure seeks to protect.
If banks go down investors go down with them. If investors go down the faith in the system goes down. This embraces everything within the global western economic system. For example, the Saudis own a large part of Citigroup, what will they think, and do, if Citigroup goes down. And not only will American banks go down, British and German banks will go down too, triggering a recession as they go, possibly even a real depression.
The root of this measure is to protect the leveraged debt instruments, many of which the banks created out of crummy deadbeat loans and sold to investors, and pretend they still have some real value anywhere near their leveraged and inflated paper value.
These little crummy loans to deadbeats go so deep into the system. That is why they are such a headache. And that is why the Bush administration resorts to this totally perverted and desperate measure.