How A Bailout Plan Could Work

[ltokuda]

KIBU, I understand how the fed can move MBS’s off a companies balance sheet. But in Paulson’s testimony, he said that the fed’s purchases of MBS’s would “prime the pump” for the market and attract other investors. That doesn’t seem possible if the fed is paying artificially high prices.

stockstradr, I’ll check out the video as you suggested. I’m a regular reader of Roubini’s blog but it will be interesting to get views from other economists as well.

[stockstradr]

ltokuda,

http://piggington.com/roubini_on_the_current_economic_situation_with_predictions

That thread explains how to get access to that MP3 audio file of the teleconference.

Personally, I like the bail out proposal that Roubini explains as one of many topics in that teleconference

[stockstradr]

ltokuda,

http://piggington.com/roubini_on_the_current_economic_situation_with_predictions

That thread explains how to get access to that MP3 audio file of the teleconference.

Personally, I like the bail out proposal that Roubini explains as one of many topics in that teleconference

[stockstradr]

ltokuda,

http://piggington.com/roubini_on_the_current_economic_situation_with_predictions

That thread explains how to get access to that MP3 audio file of the teleconference.

Personally, I like the bail out proposal that Roubini explains as one of many topics in that teleconference

[stockstradr]

ltokuda,

http://piggington.com/roubini_on_the_current_economic_situation_with_predictions

That thread explains how to get access to that MP3 audio file of the teleconference.

Personally, I like the bail out proposal that Roubini explains as one of many topics in that teleconference

[stockstradr]

ltokuda,

http://piggington.com/roubini_on_the_current_economic_situation_with_predictions

That thread explains how to get access to that MP3 audio file of the teleconference.

Personally, I like the bail out proposal that Roubini explains as one of many topics in that teleconference

[KIBU]

Itokuda,

I think they are having multiple goals and objectives which may conflict each other and they will have to walk the rope carefully.

Paulson is asking for the broadest tools possible. Multiple tools means definitely that the “bidding” process as you mentioned won’t be the only tool where the treasury will buy these toxic MBS. Bidding will be there to find the lower price in certain situations to “prime the pump”. But other direct tools could be applied to save the pump at the same time (ie buying at over the price).

Paulson’s submitted plan on paper mentioned nothing of “bidding” even as he testified. Rather, it requested for the broadest range of means to buy up toxic waste with 700 billions:

http://paul.kedrosky.com/archives/2008/09/20/text_of_paulson.html

[KIBU]

Itokuda,

I think they are having multiple goals and objectives which may conflict each other and they will have to walk the rope carefully.

Paulson is asking for the broadest tools possible. Multiple tools means definitely that the “bidding” process as you mentioned won’t be the only tool where the treasury will buy these toxic MBS. Bidding will be there to find the lower price in certain situations to “prime the pump”. But other direct tools could be applied to save the pump at the same time (ie buying at over the price).

Paulson’s submitted plan on paper mentioned nothing of “bidding” even as he testified. Rather, it requested for the broadest range of means to buy up toxic waste with 700 billions:

http://paul.kedrosky.com/archives/2008/09/20/text_of_paulson.html

[KIBU]

Itokuda,

I think they are having multiple goals and objectives which may conflict each other and they will have to walk the rope carefully.

Paulson is asking for the broadest tools possible. Multiple tools means definitely that the “bidding” process as you mentioned won’t be the only tool where the treasury will buy these toxic MBS. Bidding will be there to find the lower price in certain situations to “prime the pump”. But other direct tools could be applied to save the pump at the same time (ie buying at over the price).

Paulson’s submitted plan on paper mentioned nothing of “bidding” even as he testified. Rather, it requested for the broadest range of means to buy up toxic waste with 700 billions:

http://paul.kedrosky.com/archives/2008/09/20/text_of_paulson.html

[KIBU]

Itokuda,

I think they are having multiple goals and objectives which may conflict each other and they will have to walk the rope carefully.

Paulson is asking for the broadest tools possible. Multiple tools means definitely that the “bidding” process as you mentioned won’t be the only tool where the treasury will buy these toxic MBS. Bidding will be there to find the lower price in certain situations to “prime the pump”. But other direct tools could be applied to save the pump at the same time (ie buying at over the price).

Paulson’s submitted plan on paper mentioned nothing of “bidding” even as he testified. Rather, it requested for the broadest range of means to buy up toxic waste with 700 billions:

http://paul.kedrosky.com/archives/2008/09/20/text_of_paulson.html

[KIBU]

Itokuda,

I think they are having multiple goals and objectives which may conflict each other and they will have to walk the rope carefully.

Paulson is asking for the broadest tools possible. Multiple tools means definitely that the “bidding” process as you mentioned won’t be the only tool where the treasury will buy these toxic MBS. Bidding will be there to find the lower price in certain situations to “prime the pump”. But other direct tools could be applied to save the pump at the same time (ie buying at over the price).

Paulson’s submitted plan on paper mentioned nothing of “bidding” even as he testified. Rather, it requested for the broadest range of means to buy up toxic waste with 700 billions:

http://paul.kedrosky.com/archives/2008/09/20/text_of_paulson.html

[TheBreeze]

As I read Paulson’s original proposal, his plan was to take $700 billion in taxpayer money and incinerate it. Under the current bailout plan, it looks like Paulson will be incinerating less money and at a slower rate. That’s a win for the taxpayer I guess.

[TheBreeze]

As I read Paulson’s original proposal, his plan was to take $700 billion in taxpayer money and incinerate it. Under the current bailout plan, it looks like Paulson will be incinerating less money and at a slower rate. That’s a win for the taxpayer I guess.

[TheBreeze]

As I read Paulson’s original proposal, his plan was to take $700 billion in taxpayer money and incinerate it. Under the current bailout plan, it looks like Paulson will be incinerating less money and at a slower rate. That’s a win for the taxpayer I guess.

[TheBreeze]

As I read Paulson’s original proposal, his plan was to take $700 billion in taxpayer money and incinerate it. Under the current bailout plan, it looks like Paulson will be incinerating less money and at a slower rate. That’s a win for the taxpayer I guess.

[Author]

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