Sunday, March 26, 2017 12:21:22 PM
Let me preface it: There are plenty of reasons for the treasury to suspend the NWS payment that is coming up: For one, to prevent a another bailout that might occur because of the changes in the tax assets, which would cause unneeded instability in housing markets. For two, to start building up an asset that the treasury implicitly owns via warrants, to short or long term benefit. For three, to potentially abate all the pending legal cases that cost resources to continue and could potentially embarrass a lot of people. For four, to keep consistency in Mnuchin's perceived position by many people, and to prevent political fallout from many people who supported the president, as well as militancy by many lobby groups, including fairly on the ground ones which want to safeguard affordable housing.
So the question is the following: Given so many reasons to stop the upcoming NWS payment, with what possible narrative can the treasury, presidency, etc. to save face should it allow to go through?
I ask this because I have the nagging feeling is that it will go through, but I can't really come up with much in terms of how they will justify it.
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