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AIG bailout, interesting alternative approach
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<blockquote data-quote="Flipx99" data-source="post: 5016348" data-attributes="member: 562352"><p>Well, I have holdings in AIG so I won't comment on that particular loan.</p><p></p><p>To be truthful, loan modification would be the best way to solve the issue. It forces banks to take a loss, but turns non-performing loans into performing ones, so they can be accurately priced. However, I feel the homeowners who got in over there head should be punished.</p><p></p><p>Without a bailout, there is a possibility of a credit freeze, as many banks issue short term debt for working capital. Without this working capital, it causes operational problems and could cause some families to miss a paycheck.</p></blockquote><p></p>
[QUOTE="Flipx99, post: 5016348, member: 562352"] Well, I have holdings in AIG so I won't comment on that particular loan. To be truthful, loan modification would be the best way to solve the issue. It forces banks to take a loss, but turns non-performing loans into performing ones, so they can be accurately priced. However, I feel the homeowners who got in over there head should be punished. Without a bailout, there is a possibility of a credit freeze, as many banks issue short term debt for working capital. Without this working capital, it causes operational problems and could cause some families to miss a paycheck. [/QUOTE]
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