Posts Tagged ‘Principal Reduction’

 This is being touted as good news.  It is not.  For relative chump change, these banks will be indemnified for their crimes.  The same banks will then charge fees, recouped from the payout no doubt, to help a limited number of people. Be assured they are right now looking for any loophole that will allow them an out.    Be also assured their friends in the judicial and legislative systems are helping insert more of the same loopholes. 

…it is crazy to me that four years after the bubble burst, the idea of a principal reduction is still being railed against.  The idea of the moral hazard is the most poisonous to me; we crossed that threshold when we bailed out the banks.

Synthetic Assets has more.