Friday, November 04, 2011


I'd prefer to just give free money to everyone, perhaps with the requirement x% of it goes to various kinds of debt reduction if you have debt to be reduced, but, yes, something should happen..

Greg Lippmann, the former Deutsche Bank AG trader who gained fame for his bets against subprime mortgages before the housing market collapsed, is calling for debt forgiveness for U.S. homeowners.

“Principal reductions are necessary to help ameliorate the housing crisis,” Lippmann, chief investment officer for New York-based hedge fund LibreMax Capital LLC, said in an Oct. 31 letter to investors obtained by Bloomberg News. The step will also lower losses on loans underlying mortgage bonds, he said.

I've always never really understand why this couldn't have been set up in a win-win-win way for everyone, with a bit of a government sweetener.