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|User Info||Rescue Plan, Bailout, How about Den Of Liars!; entered at 2008-09-23 12:39:08|
Registered: 2008-04-01 NJ
By the way, one other thought, I don't doubt in the least the veil of secrecy this plan is wrapped up in is in an effort to allow those in trouble to "write up" the value of the bad assets on the balance sheets. Now whether that is a function of the mechanism KD mentioned or not, I'm sure some form of this concept is certainly in play. I could certainly envision the govt overpaying for these assets and the "marks" are written up. To a question as to how these things are valued and potential conflicts of interest, while its Paulson's "intention" to limit the sales to regulated institutions, what prevents them from recycling assets already sold off to the likes of Citadel and others? For example, Citadel buys or has already bought (like their purchase from Etrade) assets for 22c on the dollar, sells it to GS for 25 or 30c on the dollar, who then sells it to the govt (or US taxpayer would be more appropriate) for 50c on the dollar, rinse and repeat...this is fraught with loopholes out the yin yang (or use another more colorful phrase)