Wednesday, November 26, 2008

Solving the Subprime Mess

Slate has an excellent opinion on how to solve the subprime mess: Sue the hell out of the subprime lenders.

No, its not that difficult.

Bank of America settled a suit quietly for $8 Billion dollars for predatory lending. That means the lending was illegal.

So what to do? Sue each such lender and get the loans declared illegal. Let the predatory lenders foot the bill instead of the stupid taxpayers.

Once Countrywide, Citi and BofA realize they need to forgo bonuses and commissions, plus face the wrath of shareholders for losses, they will curb any such tendencies in the future PLUS bear all the losses so far. What do you say?

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