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.”

1 comment so far

  1. Trasvis Fast on

    Thanks Michael. However I got the ROI wrong. 40 cents on 2 trillion = 800 billion. Sold at 50 cents on the original face value equals 1 trillion for an ROI of 25% percent. Perhaps you could edit the ROI in the post for me.

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