[Rhodes22-list] Accounting

[Brad Haslett]

Bill,

You just touched on the "sensitive nerve" of this issue, the moral
obligation.  If we bail out the lender, why not the borrower?  What
about those of us who behaved responsibly?  To paraphrase one of our
founding fathers, do we "hang together or hang individually?" Like
you, I'm getting offers that are too good to be true.  I would start
asking them if they might want to consider if I'm paying back the
money I already owe them but I don't think Fatima in India really
cares.

Brad

On Wed, Oct 1, 2008 at 4:10 PM, Bill Effros <bill at effros.com> wrote:
> Wally,
>
> I think the problem is that some significant portion of these homes will
> not be worth anything to anyone by the time buyers can be found.
>
> And many more mortgages are held by people who know their homes are not
> worth the remaining amount on their mortgage.  These people ask why, if
> the banks can get out of their stupid obligations, can't the mortgage
> holders get out of theirs?
>
> And the people who weren't stupid in the first place ask why they
> shouldn't have their obligations reduced too, instead of being asked to
> pay for the stupidity of others.
>
> Credit is still easy to obtain if you can demonstrate you will pay it
> back.  I was just offered a $729,500 fixed loan with 3% down by one of
> the largest banks in the country...here we go again...
>
> Bill Effros
>
>
>
> TN Rhodey wrote:
>> "A sharp CPA could design a believable computer
>> model that could make the value come out wherever his boss wanted it
>> to be. He could also convince outside auditors and regulators of the
>> soundness of his model. "
>>
>> Brad, I am with you but wondering how they determine new (long term) value
>> for this big pile of crap?  One thing the article mentions that often gets
>> lost. Most people are paying their mortgages. The properties that are
>> bundled in these securities are not worthless. At some point they all will
>> be worth something to somebody.... but when?
>>
>> Are there computer models that accountants trust? Not poking a stick I have
>> no idea. I can see how it would ease credit. I also see how it led to past
>> problems.
>>
>>  I thought we were rushing into the bail out. I am all for any plain that
>> reduces government intervention.
>>
>> Wally
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