"Dave" wrote in message
...
On Wed, 11 Feb 2009 16:25:21 -0800, "Capt. JG"
said:

So, still waiting for something besides bs... still waiting for a
solution.

Neither I nor anyone else has a workable comprehensive solution. I do have
some ideas for dealing with the part I'm familiar with--the toxic bank
assets.

I think what's needed in that regard is some creative use of Congress's
power to prescribe bankruptcy laws, thinking a bit outside the box. The
proposals to have bankruptcy judges rewrite individual mortgages is just
plain silly. But the bankruptcy laws could be used to trump some of the
Constitutional limits on rewriting the contracts of institutions and
others
holding structured investment vehicles. The process would involve what
might
be called "destructured finance"--using the bankruptcy laws to unwind the
structured finance vehicles that the investment bankers and lawyers built
on
the basis of a faulty economic model, and getting rid of the various
"tranches" of each trust so as to eliminate the conflicts inherent in the
way those vehicles are set up. Then bring in the workout specialist to
restructure the underlying mortgages without the conflict between former
holders of the various tranches. The result should be to bring some
certainty to the value of these vehicles and their underlying mortgages.


Interesting suggestion. If you're not too proud, you should send it to them.
You never know. You could end up on National TV next to Joe-the-non-Plumber.

Seriously though, you should send it along.

Given that no one has a comprehensive solution, then it seems to me that
trying things that might work, piecemeal if necessary is the only rational
approach vs. doing nothing. I believe that's what's going to happen.

Why would rewriting mortgages to something a bit more same be silly? In some
cases it wouldn't make sense, in others it might.

--
"j" ganz @@
www.sailnow.com