breck10

The Bailout's Auction Design: How About a Market?

the point isn't whether the small percentage is their lemons, but rather that a market price will be determined for that group of assets, and it will help everyone extrapolate the worth of the entire institution once more "samples" are truly market tested. This is a great idea. This is much better than what we have had so far, which is that a bank let's a particular investor "under the tent" do analyze the assets and either makes a bid or walks away. There's no information to the market on tat and everyone stays in the dark. We need to shine a very bright light on this.