One wave of Henry’s magic wand and debt disappears

Quoth the AP: Wall Street rallied in a stunning late-session turnaround Thursday, shooting higher and hurtling the Dow Jones industrials up 400 points following a report that the federal government might create an entity to absorb banks’ bad debt. The report also cooled investors’ fervor for safe investments like government debt that were in demand …

The obligation of walking away

Secretary Paulson played the morality card two days ago when speaking about home owners that were in over their heads: Homeowners who can afford their payments and don’t have to move, can choose to stay in their house. And let me emphasize, any homeowner who can afford his mortgage payment but chooses to walk away …