Travis Fast’s Suggestion
Travis Fast made an excellent proposal as a comment here, but it deserves a more prominent exposure, so I thought it would be ok to post it here.
I have a proposal. Buy toxic sub-prime at 40 cents on the dollar. Disaggregate and re-sell to home owner at 50 cents on the dollar thereby ensuring the tax payers a minimum real 25% return on 2 trillion and the bottom third of the mortgage market mortgage on a house for half the originally bloated asking price. That puts a floor in valuations and makes sure that the losses are suffered by those who took “the risks.”