could industry-wide work-out of subprime mortgages help?

[perfectfire]

[SunTzu]

I would propose a solution like an Ebay for national foreclosed home bidding site instead of having gov't and industry run this crap of a bailout.

If a house goes into foreclosure, the house is immediately turned over to a semi-private organization (much like the bad S&L loans were handled by Resolution Trust Corp) listed on the bidding site for everyone to bid on nationally with standardized information like photos, map location, crime statistics, etc (more relevant info than your typical RE site since many can't visit the house in real time). The bank (or the mortgage holder through CDO say) that made the bad loan has two options either wait for the result of the bid or accept a market value of the house right away from the semi-private organization. The organization could make money by taking the difference between what it pays to the bank and what the ultimate bid is.

[deejayoh]

[AwaySooner]

[rose-colored-coolaid]

[SeattleMoose]

AwaySooner that was a great link...upshot is we are screwed...what a surprise. Seems to me the bloggers have seen this all coming for years.

I don't believe we are headed for a recession. The medicine required to fix our economic woes will need to be much stronger...unfortunately.

All the hairbrain ideas being floated by Govt/FED/Wallstreet are the result of "panic thinking". There is no way out without big pain.

I once owned a place in TX. On my property was a tree. When we bought the place the tree was straight but over time it started to become crooked. Most of the limbs were on the same side the tree was leaning...towards the crook side. The tree tried in vain to save itself by shedding a few of the limbs on the "downside" but the problem was that the actual trunk had become crooked. Eventually the tree just toppled over.

When an entity starts to go crooked there is reached a "tipping point" when the only recourse is complete collapse.

Something so simple yet somehow reflective of the whole teetering pile of #$^% that is our economic/FED/Govt/Wallstreet system.

Timmmmbbbbbeeerrrrrr!!!!

[rose-colored-coolaid]

[finance]

[rose-colored-coolaid]

[deejayoh]

[finance]

[rose-colored-coolaid]

[deejayoh]

[perfectfire]

[deejayoh]

Wow. Now that I am looking at the financial's, WAMU's geographic exposure looks nasty

Check out their distribution of "loans held for portfolio"

California = 49%
NY/NJ = 13%
Florida = 8%
WA/OR = 6%
Texas = 3%
Illinois = 3%


And this doesn't count what they've sold. This is the good stuff.