> ----- Original Message ----- > From: "Doug Henwood" <[EMAIL PROTECTED]> > To: "Progressive Economics" <[email protected]> > Subject: Re: [Pen-l] My rescue plan > Date: Tue, 23 Sep 2008 15:50:39 -0400 > > > > On Sep 23, 2008, at 3:44 PM, [EMAIL PROTECTED] wrote: > > > if the Treasury were to step in and pay the mortgages of all subprime > > borrowers > > Prime borrowers, and nondelinquent subprime borrowers, would be mighty > pissed > off.
actually thinking about it, as well as needing to more or less completely suspend the laws of political gravity (which arguably Julio must have been hoping we'd spot him in the first place given that this is a plan redistributing money from the rich to the poor), there's an even more killer objection here in that you can't use the static figures for the current population of delinquent subprime loans; if you launch a government program to take care of the mortgage for delinquent subprime borrowers, then the category of "non-delinquent subprime borrowers" is going to shrink to zero pretty quick, and the category of "prime borrowers" is going to see quite significant migration to "subprime". I think these forseeable dynamic effects could make enough of a difference to the total cost of Julio's package to stop it dead in the water. best dd _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
