As to Treasury Secretary Paulson’s request for a $700 billion dollar blank check from the taxpayers: Absolutely NOT!!!
Yes, to a bankruptcy court’s ability to restructure debt secured by one’s home or property.
Property’s owner: keeps their property, if they are deemed fiscally qualified to pay the restructured loan.
Mortgage Holder: makes some money, less than they’d preferred, on the note.
Investors in risky ‘mortgaged-backed’ paper: get what modest return, or lack thereof, that one should expect from a risky investment.
Simple, straightforward and it costs the taxpayer, who wasn’t previously involved in any way shape or form, very little.