John Hussman on the Banking & Housing Markets

Posted on March 31, 2009

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John Hussman posted his weekly comment article yesterday that provides one of the most lucid descriptions of why the poorly constructed mortgage assets on bank balance sheets pose such as problem, and a clear set of solutions that would probably work if implemented.

Of particular interest, Hussman explains why allowing the banks to charge the negative assets to existing bank bondholders instead of using government cash infusions is a more natural plan, and why we\’re not even close to getting out of the woods in the housing market:

Here\’s a link to his article – \”On the Urgency of Restructuring Bank and Mortgage Debt, and of Abandoning Toxic Asset Purchases.\”

Posted in: Housing Market