Effective Demand wrote at 12:09 pm
snip
The fed is printing up $1.25 trillion to buy up MBS and 300 billion to buy up treasuries to keep long rates low... Why not take advantage of that to clear up the problem sooner rather than later? TPTB want to use the opportunity to modify as many loans as possible but instead of having one solution, why not have many solutions and lets the lenders make the choice that makes the greatest economic sense?
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i agree , and
just think, if the fed, treasury, congress, or whom ever had spent the tarp helping all the troubled subprime home "owner"s

they would have had enuf tarp money, (700 plus billion) to outright buy every troubled subprime loan IN TOTAL, give the house to the "owner" for free

and still have had about half a trillion dollars of tarp money left over

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this is how you know at least (at least) one of two conditions is true

the problem had little to do with subprime
or / and
TPTB are studpid