I'm not one who thinks our Galtian Overlords are necessarily especially bright, so I often wonder if their policy desires actually make any sense for them. Obviously the banksters have made out pretty well in all of this, but not because they have any idea how to run banks. They made out pretty well because they got the government and the Fed to give them lots of free money.
It's hard to quantify any of this, and there's a big mess in trying to think about the difference incentives facing investors and servicers, especially given that some are both, but wouldn't things be better even for the banksters if, say, bankruptcy cramdown had passed?
