The Mortgage Professor

Jack Guttentag (a.k.a. the Mortgage Professor) has a piece today entitled, Saving the Banks Without Breaking the Bank. It basically argues that we should be focused on consumer rescue rather than institutional rescue because the only way to stop the slide in real estate prices is to help those underwater not be forced into bankruptcy thus limiting the erosion in value of the¬†institution’s assets.

What do you think?

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One Response to The Mortgage Professor

  1. Caelan says:

    OF course we need to save the consumers! We only save the banks to let them eat each other up. If we want the largest contributor to US GDP (consumer spending) to increase, we need to give the consumers the ability to spend!

    So why dont we try bailing out the poorest now?

    http://www.blueoregon.com/2009/02/subprime-bailout.html

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