Bailouts Are Painful - And Should Be [View article]
Great article.
Could someone please educate me? If $700B really is enough to restore confidence and solvency, why does it have to be fed into the system via purchases of multiple heterogeneous and difficult-to-price MBSs? Why can't it be fed in on an as-needed, case-by-case basis by way of Treasury purchases of newly issued convertible preferred shares? As for foreign banks holding toxic US stuff - nobody in the States forced them to buy it, so it would be up to their home governments to recapitalise them.
Not a free market solution, of course, but this market stopped being remotely free months ago.
-
Great article.
Sep 27 13:42 pm
|Rating:
0
0
All Comments by OldLimey »Bailouts Are Painful - And Should Be [View article]
Could someone please educate me? If $700B really is enough to restore confidence and solvency, why does it have to be fed into the system via purchases of multiple heterogeneous and difficult-to-price MBSs? Why can't it be fed in on an as-needed, case-by-case basis by way of Treasury purchases of newly issued convertible preferred shares? As for foreign banks holding toxic US stuff - nobody in the States forced them to buy it, so it would be up to their home governments to recapitalise them.
Not a free market solution, of course, but this market stopped being remotely free months ago.