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Dan Lanciani

In article , (Chris) writes:
| wrote:

| It's not exactly giving the money away, which unfortunately is the
| impression most people have because the media has not done anything to
| explain it. Even Bush didn't do a good job of explaining it. What
| they are going to do is conduct a reverse auction for loans that are
| delinquent, but have not defaulted on.
|
| True, but buying those loans at a time when the actual value of those
| assets cannot be easily determined seems like throwing money away, and
| without solving the problem, to me. Then consider that wolf Paulson
| would be guarding the chicken coop...
|
| Would you buy one of those loans with your own money? For how much?

If it were the loan on my own house and I could sell (or possibly
refinance) the house for less than what I would have to pay for the
loan I might. In order for the bail out to actually help the banks
is the price going to have to be higher than that? I find it a
little confusing because people talk about "pennies on the dollar"
but it isn't clear that I can buy real estate for pennies on the
dollar compared to a year or so ago (unless we are talking about
maybe fifty pennies). Or is the problem that real estate isn't
moving at all because the prices haven't come down?

Dan Lanciani
ddl@danlan.*com