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February 19, 2009

Here's what I don't understand about the bailout

The new plan is to take $275 billion and from that $200 billion goes to mortgage giants and $75 billion goes to homeowners facing foreclosure.

Why not steer the entire $275 billion to homeowners?

The mortgage holders are going to end up with it anyway, right? And wouldn't steering the entire amount to homeowners adds some credible value to those nearly worthless mortgage-backed securities at the center of the implosion?

What am I missing here???

Posted by Kevin at February 19, 2009 12:24 AM