photo via CalculatedRisk.com
*because banks do not want to lower principal for regular Joe on main street and the Federal Reserve bank, which turns out does have the power necessary, is not demanding anything from their cronies. And those investors who bought countless CDOs to gain a few points more than treasuries are also putting a damper on the less principal magic of deferring bank losses and keeping average americans in their homes. So consider this, Morgan Stanley et al (great article in Sunday Times magazine from Lowenstein) can walk away from their commercial real estate holdings that are underwater but not american consumers holding a house that is about to reset (cuz you couldn't have bought the damn thing in the first place if you didn't get some EXOTIC mortgage, not because you bought more than you could afford, the public's misconception, but because housing prices were going through the roof because exotic mortgages were being sold aplenty so that investors could buy CDOs-it ain't brain surgery people). Where is not only the logic in all of this, but the plain vanilla restructuring of debt that banks and commercial real estate holders have gotten in abundance from us taxpayers? They get a tax write off ijiots, its called subsidies in form of low borrowing and write down write down write down. GS will not pay any taxes on those bonus profits, get it? What we need here is to stop paying our credit card bills and walk away from your underwater mortgage just like these sheisters do. You think Dodd is not running for reelection because he's tired and has prostate cancer? Please....He knows he doesn't stand a chance cuz he is the PROBLEM.