Well if you look at the bright side. What is the government getting for the 700 Billion. I think they are getting 700 billion in loans that are actually securing real property (assets) and they have value. Rough guess, this represents about 3 million, 500 thousand homes at $200,000. Now if all these were sold when the market for homes gets better, (and it will sooner or later), and all these homes are sold at $250,000 each, that makes a nice profit of 125 billion. So if I had 700 Billion sitting around and I could get all those assets, I think I would jump on the deal. That would be about 18% profit and if it turned in 2 years it would beat the stock market profits by a good margin.
OK, lets get real, BUT, why not see how many of those assets private investors would be willing take over before we buy the whole farm.
Just little old me thinking but if I had a million right now, I would be shopping for foreclosures to buy at bargain rates.
What am I missing here, it seems any thing else would be negative thinking and I am a positive kind of guy.
Pete Stanley
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