I would just like to comment that I find it extremely irritating when everyone brags about Clinton's wonderful surplus.

Although it has escaped major headlines, it is mainly becuase the FDIC struck some backroom deals with large institutional investors to buy those "toxic" mortgages for pennies on the dollar.

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When they lend, each $100 lent leads to another $700 of more loans that can be made ... that increases velocity.Until banks sell off their toxic assets (REO's & short sales) at reasonable prices (via the TACT Program) vs. trying to dump them to cash buyers at 35-40% discount, we won't see money velocity pick up ... and we'll see a continuing downward spiral in real estate prices.

Scott, it's hard to read your response and not reply with some irritation towards your perpetuation of the stereotypes so elequently stated in your post.

It's getting a little irritating.

First, there is no way to tell what kind of mold is growing (or how toxic it is) just by looking at it.

This way the bank gets a higher price than with a cash offer.It all comes down to the strategy of the bank and all of them are different.All you can do is ask the bank.They will very quickly tell you YES OR NO.If it's a maybe or a yes they will tell you under what conditions.I have found the bigger banks want to clean most toxic loans off the books.This makes potential stock purchasers feel better about how many bad loans are still lurking on the books.The goal of bigger banks is to show stronger books so that more stock is purchased in the company to increase the stock price.

They brought in another supply, which is now know as "chinese drywall" It's toxic and actually eats away at copper.

If your neighbor starts dumping toxic chemicals in the stream behind your house, you'd probably think it was okay to inform "the government."