Over the last 5 or so years, there were thousands of broker shops and lender orgination shops that have been shut down over the last 10 months. These toxic loan producing shops were chuning out a huge number of crap loans and fraud. Now they are all out of business. Lenders have reduced staff by the thousands.

Thus, here lies the problem. In order to REALLY make an effort to clean this mess up in a timely manner, lenders and servicers would have to litterally hire the tens of thousnads of loss mitigation specialists to undo the millions of loans that have been made over many years that NOW need be mitigated. AND WE DONT HAVE YEARS.

Essentially, we would probally have to double the hirng in order to effectively deal with the problem at hand.

You and I both know that this is not going to happen. Especially at a time when lenders are laying off and out sourcing now to India.

So, my educated guess based on commen sense says that we are up toxic loan creek without a paddle.

Lenders and servicers and possibly government would have to put hundreds of millions into erecting proper loss mitigation departments, hiring personell just to handle the massive toxic loan clean up task at hand.

Then you have the ridiculous stock market. Up and down. Oh is the housing market going to effect the rest of the economy? blah…blah….blah….OF COURSE IT IS. It doesn’t happen over night. It takes time to trickle down to the rest of the economy and it is a trickling.

Paulson knows this and I just do not see any way to avoid the certain recession that IS coming.