Recoup--Build in the mechanisms whereby taxpayers are made whole. Sen. Reed's proposal to buy equity as well as junk is the simplest way to do this but other means to this end are possible. While we're at it, restore Clinton-era tax rates … [Read more...]
Stakeholders, history, and options in the mortgage mess
Who's who? Broadly speaking, the most important distinction is between people who own homes and people who don't own homes. But which category someone is in may have changed during the bubble. So that gives us at least 6 … [Read more...]
GOP 2008 Platform: “We do not support government bailouts of private institutions.”
2008 Republican Platform: We do not support government bailouts of private institutions. Government interference in the markets exacerbates problems in the marketplace and causes the free market to take longer to correct itself. We believe … [Read more...]
Link to Barney Frank’s interview this AM on Finneran’s Forum
Here is the link: http://audio.wrko.com/m/audio/... I heard it live, listened to it, and intend to listen to it again. What do YOU think? … [Read more...]
It’s Not a Fiscal Crisis – It’s a Constitutional One
He also argues that giving Paulson this unprecedented dictatorial power over money and finance is a constitutional crisis in and of itself. It is a long post, but well worth the total read. You will feel like you have a bigger grasp of what … [Read more...]
When Paul Krugman and Bill Kristol agree, you know you’ve got trouble
Today's NY Times op-ed page features two columnists who ordinarily can barely agree on what day it is, much less on matters of substance. Today is different. They both think the Paulson "cash for trash" plan, at least in its … [Read more...]
An unspeasant change in the bailout formula.
The logic is that the bailouts to date have set up short sellers to know where to look for the next victim, sort of a domino theory of busted equity corporations. This probably has some merit. However, if the formula shifts so that … [Read more...]
The Arrogance!
The arrogance of these directors! As the Lehman Brothers debacle showed, the Fed was not rescuing AIG because AIG "deserved" to be rescued. The Fed was rescuing AIG--exercising its powers under Section 13(3) of the Federal Reserve Act for … [Read more...]
Fannie and Freddie
The winners, it seems to me, are: (1) The bondholders, including the foreign governments and investors who own $1.4 trillion in U.S. mortgage debt. I feel like a sucker for investing in treasury bonds rather than Fannie and Freddie bonds. I … [Read more...]
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