Monday, December 17, 2007

How to solve the subprime mess?

The best move to solve the subprime mess is to do nothing at all.

The government must be careful about anything that props up home prices because
it would delay the point at which investors -- in both real estate and mortgage-backed securities – believe prices have touched bottom.

It is common sense that the financial erosion will come to an end when the prices of homes and equity in homes stabilize.




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