SA Guest

A Closer Look at the Treasury's GSE Preferred Stock Purchase Plan

I have reviewed many of the articles and comments on SA and elsewhere with respect to the Treasury’s actions today. There appears to be a recurring theme that what they have done should put a floor under the housing market and eventually lift the broader market and economy out of its funk. The direct cost, while painfully high for the holders of common and preferred equity, would appear to be bargain for an action that holds such great promise. If it was that easy, wouldn't they have done it months ago, so what’s the catch? Or should I say what's the risk, are there any other shoes to drop?