You must solve the 'financial crisis'
Posted by Mac 10 years ago, closed 10 years ago
Bail 'em out
Let 'em fail
Other (comment)
Rummage/Garage sale
LowFlyingMule: of all the CEO's and CFO's stuff.  
aktaeon: And, a similar curse on their children for ten generations.
FoolProof: Yeah, that's the American way, right there.
FoolProof: After that I suppose we send them to debtors prison where they'll undoubtedly die of consumption or dysentery.
aktaeon: I'm beginning to suspect that you're a banker and, therefore, weigh as much as a duck.  
FoolProof: I work FOR a bank. I am not, however, a banker.
I like the Sweden idea
shigpit: Make the profits from a sale go back to the taxpayers. Or somesuch.
Boil 'em, mash 'em, stick 'em in a stew.
Why don't we...
FoolProof: ...let the banks that DIDN'T make these shitty decisions to buy the ones that did at rock bottom prices.
FoolProof: That is, instead of throwing it on the credit card getting a new credit card to put this on because all of the ones in our wallet are maxed.
I've got a handle on this biotch here. What we do is say to the st00pid-ass loan sharks that we'll buy their bad loans on an individual basis, then we restructure the loans so that people who would default end up with terms that they can actually live with. That way, we're injecting capital into companies that have let their risk go too high, and we're making sure that we're not saddled with a bunch of securities that are about to fail. We don't want the securities. We want the loans. The people who have the loans want their mortgage payment to go back to where it was at the start of their 2-year ARM, and they don't want their house foreclosed. Had the lenders not overextended themselves, they could do the same thing. Their choices now are to restructure the loans and lose money on interest that no sane person would ever have expected to collect, or to foreclose and lose money on the sale of a house that isn't worth what they'll be able to sell it for, much less what they loaned out. By taking the loans, we reduce their overall risk and increase their capital. They still take a loss, but then again, what did they expect? By restructuring the loans, we allow people to stay in their homes and stop the housing price freefall caused in part by thousands of homes that nobody can get a loan to buy hitting the market. People who avoid forecloseure in this way get a deep, dark black mark on their credit, making sure that they either stay in their home or they get no more loans.  
Since the loans have been sliced and diced into a hopelessly complicated knot, the government purchase of crappy loans contributing to the securities should increase their value without anyone trying to (or being able to) put together a million-piece jigsaw puzzle. The securities would get snapped up the moment this solution was announced, and the people buying the securities would make money.  
Meanwhile, we lock anyone with a Golden Parachute into staying where they are until the loans we buy get paid off or the company goes out of business, and we make sure their compensation remains tied to the company's profitability or lack thereof. They rise with the company or they fall with it.
MrsBot: I'm sorry Fluffy, what you are suggesting will never work because it carries with it a minimum of personal responsibility that the a-holes at the top of the companies are not going to accept.