[Rhodes22-list] What's It Worth?

[Bill Effros]

The bottom line on the bailout seems to be trying to determine the 
future value of assets on a current basis.

Some of those mortgages will pay off over their lifetime.  Others are 
worthless now, and never will have any value.

What will be the mechanism to ensure the government doesn't wind up with 
only the junk?  It's not really that hard to sort the wheat from the 
chaff, and I would expect ongoing businesses to do so.  If that happens, 
taxpayers will never recover any significant portion of the money they 
put up.

Most of the people facing foreclosure can't afford their homes no matter 
who is holding their mortgages.  And many of those homes can't find 
buyers at any price.  As they sit abandoned they are looted and have 
less value every day.

Will Federal taxpayers have to pay local taxes on the worthless homes 
they own?

And, if not, how will local taxing bodies obtain the money to continue 
operations?

The Feds will discover there is only so much money you can squeeze out 
of the survivors to rescue the...financial system.  (Oxymoron.)

Bill Effros