While the purchase of troubled asset (for it to work) will be above what it's worth, in exchange the Treasury has a warrant to get in return, equity share of the company of equal value to the toxic waste. This was reported by NY Times.Suppose toxic waste were removed from the balance sheet, this has inevitable boost to stock prices. With this bargaining chip, Treasury is not all at a loss, long term, Paulson may well be regarded as the person whom, it one fell swoop, manage to reduce US debt.
A compromised bailout deal is useless.http://delong.typepad.com/sdj/2008/09/kron-4-5-pm-sun.html
OMG, the congress failed to approve the bailout. ...goodness.
short term pain but maybe better in the long run. Unless Mccain-Palin wins. Then I will become a pastor ... end times.
I have a suggestion to solve the USA problem. Just give out citizenship to anyone who has money to buy a property in the United States.I'm sure tons of people from China, India, Singapore, Malaysia and Middle East would capitalize on this short-cut way to gain US citizenship. It'll create a property boom and the subprime problem will disappear.Just my wild suggestion.
Well Done America! Stick it where it hurts... Let Joe Six-Packs have his day!The more I reconcile with what the IMF and the US Treasury had done during the '97 crisis, and what could have happened if IMF hadn't resisted the collective efforts of wealthier countries to make an infusion of saving bids, the greater my inclination in letting Americans feel the pain that was impinge on millions living in greater abject poverty, even as it was already. The absolute result of their actions, manipulating while welding absolute authority with the purse strings. So what if many more Americans would face foreclosure or can't even spare the odd dollar buying whoopee cushions to cheer to canned laughter. Suck it. And thus Capitalism has to work its way... Congratulations, now you know how it hurts. Thanks you and good riddance.
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