Reply #8: You're leaving too much out of the equation

[Po_d Mainiac]

The original paperwork may well prove that the securities were in fact defective from the onset. That means that those actually holding the investments (in secularized form), and getting screwed (Think CALPERS, etc) may be able to force the shit back onto the originators. We may even see a bunch of prosecutions and perp walks

In other words, the fuckers that are getting the bonuses will hopefully get their just rewards as they get to have first hand knowledge of being unemployed and homeless.

There would also be a great deal more willingness on the part of the banksters to actually resolve a lot of the problems when there interest jumps from just 'servicing' a particular mortgage, to owning it.

All of a sudden it would be in the best interest of those trying to keep the last iota of light gas in the housing market, into allowing the bottom to be found.