Friday, September 19, 2008

Send the phony paper money companies down the toilet.

Would a Resolution Trust Corp.-type solution work? - Los Angeles Times:
"Today's troubled securities are much more complex than the S&L assets, with valuations that may not yet have reached bedrock.
'They're very hard to account for and their value is still a moving target,' said Michael Greenberger, a law professor at the University of Maryland and a former official at the Commodity Futures Trading Commission. 'Creating a bureaucracy that takes paper that has no value and tries to sell it is just going to look like more smoke and mirrors.'
Because the assets are not already in government hands, as was the case with the RTC's portfolio, the new agency would have to acquire them from their troubled owners, presumably at a discount price. This would probably force the sellers to record the sale as a loss -- exactly the outcome that many banks and investment houses have tried to avoid. Any overvaluation by the government buyer would mean a potential loss for taxpayers, which would be politically explosive."

Not on my back you don't!!!

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