Professor Elam

Wed Oct 20 2010

This professor who wrote the Best Way to Rob a Bank is to Own One explains the lack of oversight of bank lending that allowed many to profit from putting non qualified borrowers into homes they cannot afford. 

Frankly I suspect that the government will have to invent some sort of rescue agency. The banks cannot absorb all the write downs necessary, so instead of debiting R'E Loss on the bank balance sheet I suspect we will bet a credit to the Mortgage Loan and a debit to Home Safety Net FDIC or something.