http://www.federalre...904/default.htm
Fed is now extending it's encouragement of Moral Hazard from instituitions to Joe6Pack.
Appropriate loss mitigation strategies may include, for example, loan modifications, deferral of payments, or a reduction of principal.
Geez, i should have bought a few more houses. Prudent financial management - screw it !!. That's too old fashioned. This ain't capitalism by any means.
P.S - All this has got nothing to do with my view of stock markets. I remain a LT bull.
Is your point that the only pupose this press release serves is to notify J6P that he has plenty of room to negotiate? Unless I am really dense, I see no other useful purpose since of course the institutions are going to explore whatever means they have to mitigate losses. What am I missing?