MBIA LOOKS TO BE THE ANSWER

The current situation of splitting the assets of MBIA from one company into good and bad assets seems to be a good idea. It seems my thoughts on nationalization might be something that works. Although it is a heated debate on whether this is the answer or not, we need to look at the problems. For one the nation needs clarity. Someone out there knows what these mortgage backed securities and CDOs are worth, but they are not talking because current valuations are so small. I propose one step further, and that is to split all of the financials with bad assets into two pieces. The bad assets are to be consumed by the Federal Government and the US tax payer. These assets will be held by the government until a time that they can be resold and or the company can be split off. By doing this the financial system will unclog. The businesses will not like this idea as they think they should be paid for these assets, but they are inherently the ones to blame. We can say its politicians, or the fed board for cutting rates, but really it was because of 9/11 (God Bless all those who were affected by the tragedy). This caused the cutting of rates and allowed people to get mortgages they shouldnt have. It is the banks responsibility to know what they own, and those that benefitted such as the CEOs that profitted to pay the money back to the government. If the US taxpayer has to flip the bill now, they have to get paid back later to finance some of these huge obligations such as Social Security and anything else they have promised the people of this country. The US has no other option but to protect the bond holders as many are like the Chinese Government who will liquidate their positions in the US dollar causing a possible run down on our currency. There is no easy way out of this mess, but those people who orchestrated this mess should at least have to get in front of a camera and let us know why they allowed their business to do this.