More ‘O Moratorium
Here’s Mish on plans among three banks – Citi, JP Morgan, and Morgan Stanley — to halt foreclosures as the government cobbles a huge mortgage relief initiative.
Of course the banks are “chomping on the bit”. Banks are more than happy to halt foreclosures because the plan will allow them to dump $50 billion in troubled loans straight off their balance sheet right on to the balance sheet of taxpayers.
I suspect that $50 billion will soon become $250 billion. This plan is not about foreclosure prevention. It is a fraudulent scheme to dump toxic waste on unsuspecting taxpayer bagholders.
Trusting anyone these days is challenging.
Meanwhile, the Big Picture features a big picture of our banking system’s trillion-dollar troubles via the New York Times and RGE (Noriel Roubini and co.) Monitor.
Click to access original New York Times analysis.
Barry Ritholtz, who normally speaks volumes, simply allows the picture to tell the story on this one.
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