cjct

ROI, Paulson's Plan, and the Rise of Neo-Mercantilism

I might also add that if held to maturity, the government should stand to recoup all of its initial investment, plus a healthy profit. Given the government's low cost of borrowing and the distressed levels of most mortgage-backed assets, even with a high level of defaults within the underlying pool of mortgages, there exists and high probability that the government can turn a healthy profit for its willingess to lever-up during a period of mass-deleveraging.

ROI, Paulson's Plan, and the Rise of Neo-Mercantilism

While the internet is good for many things--the ability of the ill-informed to opine on a subject of such national importance is certianly not one of them...I would liken what will happen on Monday if the TARP has not found Congressional support to a credit cascade where one default leads to another and then to another and then to another. That Congress is actually wasting time asking Paulson and Bernanke whether "Wall Street executives should have to publicly apologize to the American people" is just one of many examples of the dearth of leadership that exists inside the Beltway...We are honestly staring into the abiss, one of the greatest crises in recent history and Senators and Congressmen want to play the blame game...truly a sad day for the Republic.