Toxic Assets... The Government... and the Fairy Tale

(Maggie Valley, NC) Would the foreclosures, short sales and other toxic assets be getting cleared out if the lenders did not expect the US government to pay more for them? I only really know 'my market'. Every short sale and foreclosure has more than one offer on it. So why aren't they getting sold to the private sector; to buyers in the community?

Are they waiting because they think the Federal Government will pay more? Is this promise of government intervention enough to slow down the process of Private sector Capital flowing in to purchase the toxic assets?

The Federal Government is actually slowing down the process; because there is a belief that they will be the highest and best offer. Is this Capitalism at work or Intervention at work?

If toxic assets are the problem as many people declare, then why don't the lenders sell the ones that have acceptable terms and good offers on them? Wouldn't that help?

So without much assistance from the Federal Government... and a lot less intervention in the form of promises to buy Toxic Assets... I believe the Free Enterprise system and the Real Estate Markets would have cleared out Billions and Billions of dollars in toxic assets. If only the government had stayed out of it.

We would be much further down the road to 'Recovery".

We are Not Alone,

Lynda Bennett, Maggie Valley, NC