If the money gifted to the super-rich bankers had instead been distributed equally to all, then the debtors would have been able to keep up their mortgages and loan payments, and
the toxic mortgage assets would have proven considerably less toxic.
Not exact matches
March 23: U.S. Treasury Secretary Timothy Geithner unveils plans to buy as much as US$ 2 trillion in unwanted
mortgages and other «
toxic assets» from banks.
The 2008 financial crisis, on the other hand, was triggered in part by subprime
mortgages — essentially, loans given to homeowners unlikely to be able to pay them back — and investment vehicles based on them in which these
toxic assets were bundled and often hidden.
The
toxic securitized
mortgage assets were not in the Main Street banks and savings and loans; these institutions owned mostly prime quality whole loans and could have bled down the modest bad debt they did have over time from enhanced loan loss reserves.
[64] The Independent described the entity sold as the «detoxified arm» of the bank, while saying the taxpayers retained «responsibility for # 20bn of
toxic assets such as bad debts and closed
mortgages.»
It seems the markets are buoyed again in the short term as the US government will eventual bridge the divide and start to buy up the «
toxic»
mortgage - backed
assets.
I would add in other
asset classes as well: credit default, emerging markets, junk bonds, low - quality stocks, the toxic waste of Asset - and Mortgage - backed securities, and private eq
asset classes as well: credit default, emerging markets, junk bonds, low - quality stocks, the
toxic waste of
Asset - and Mortgage - backed securities, and private eq
Asset - and
Mortgage - backed securities, and private equity.
3) Allow «
toxic asset» purchases using public funds only to the extent that the entire issuance of various securitized
mortgage pools can be purchased «all or none» at a moderate percentage of face value.
Remember that the «
toxic assets» held by banks represent pools of
mortgages that have been cut up into dozens of individual pieces; the higher grade pieces having first claim to payments made on the underlying
mortgages, and the lower grade pieces having claims to less likely payments.
Associates are starting to look like the equivalent of subprime
mortgages for law firms —
toxic assets they want moved off their books.