What a tangled web they weave...

I can't blame these investors. They bought these mortgages under certain terms and now the government is changing those terms. Why would anyone want to lend if the government is going to come in and change the terms!?!? No wonder there is a credit crunch! The market must self-correct without government intervention.

True capitalism is based upon the protection of private property and private contracts. When government destroys property rights, capital flees. This is why gold is zooming - it is a vote of "no confidence" and "no trust" in government and it's worthless dollar. If you have an interest in understanding the real cause of the economic crisis I suggest listening to the Austrian Economic Theory audio courses and reading the following two books: An Introduction to Austrian Economics and Understanding the Dollar Crisis.

Mortgage investors may sue on modified loans
However, a bill under consideration on Capitol Hill might take away that right
By Ronald D. Orol, MarketWatch
Last update: 3:39 p.m. EST Feb. 20, 2009

WASHINGTON (MarketWatch) -- The White House plan announced Wednesday to help as many as 9 million homeowners avoid foreclosure was greeted with generally positive reaction by homeowners and mortgage servicers that are responsible for collecting monthly loan payments.
But many private mortgage investors, owners of trillions of dollars worth of mortgage-backed securities considered to be at the center of the financial crisis, are less impressed. Many are preparing to file lawsuits against the banks and other financial institutions that service mortgages.

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