Home > Moral Hazard > Mass cramdowns = Bad karma for banks

Mass cramdowns = Bad karma for banks

The U.S. Treasury is urging U.S. banks to follow through on mass cramdowns.

But cramdowns = moral hazard.

Once the price mechanism in housing has been so distorted via embezzling Ponzi-bwankers, there is no solution.  Cramdowns won’t help. 

But it’s so funny watching the banks trying to get out of the mess they’re in!

Mass cramdowns are bad karma for banks.  It’s a toxic, fetid swampland you wouldn’t want your worst enemy to have to escape from.

I’m quietly praying the same thing happens in Australia.  That will be sweet!

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Categories: Moral Hazard
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