Yogidad

Schumer Is Way Off

Schumer is pretty much right on. The most important aspect of this bailout at this time is the LIBOR spread. Buying mortgage securities would take forever - and possibly longer - to bring those down. However, direct capitalization will remove the solvency fears that have caused the spread. The news on hedge funds that purchased the securities "distressed" at .85 to the $ is that they're holding .65 now. There is no way that a price can be put on those securities without many man hours of unraveling. Give it up - you have no idea what the problem is.