If banks sell this distressed assets at say .20 or .30 on the dollar, they will have to immediately realize the loss.
These banks don’t want to sell their “decent” assets at firesale prices. And their crap is just that...crap.
So the only way the banks are “helped” is if this investor/taxpayer partnership OVERPAYS for said crap.
Who does that help?
i recently bought a triplex for 180k.
It sold for 450 in 06. It had a 370 first and a 70 second. these are the so called assets these banks have. It is just fantasy, 30 cents on the dollar seems about right. combine this with market accounting and kaboomb. the jigis up.
the triplex is great, rents for 2600/ month.