wremy

Recent Comments

  1. 1
    Posted 2008-09-20 21:49:46 on Bailout Proposal

    It is clear that the financial sector cannot absorb any more of its self concocted poison without imminent danger to the rest of the economy. Therefore I am in favor of the government taking over these problem assets at book value temporarily (several years) in the expectation that the real estate market will firm up again and that these papers can be resold at a better value than now. Realistically it is impossible to estimate today what the residual loss will be to the Treasury. Whatever it may be though, a good part of it should be charged back to the sellers of the troubled securities. The remainder, the taxpayer will eat as "lessons learned" and result in new regulations for the financial industry. I would be interested in comments how the residual loss may be charged back. A debt obligation "tbd" with a 5-year or 10 year maturity?

  2. 2
    Posted 2008-09-16 17:00:31 on Is The Fed Giving In?

    Where are the Republican wise guys now that have been advertising that the market will regulate itself? Then maybe the Feds should let AIG go?