[KIBU]

Thank you SD Realtor for your help and also many other helpful posts that you wrote here on this site. Greatly appreciated!

[KIBU]

Thank you SD Realtor for your help and also many other helpful posts that you wrote here on this site. Greatly appreciated!

[KIBU]

Thank you SD Realtor for your help and also many other helpful posts that you wrote here on this site. Greatly appreciated!

[KIBU]

Thank you SD Realtor for your help and also many other helpful posts that you wrote here on this site. Greatly appreciated!

[KIBU]

Thank you SD Realtor for your help and also many other helpful posts that you wrote here on this site. Greatly appreciated!

[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

[KIBU]

[quote] The Paulson plan doesn’t seem to be designed to benefit the tax payer. It looks like Paulson plans to purchase MBS’s at ABOVE their theoretical values. That doesn’t make any sense. How can you attract other bidders to the market if you’re going to enforce artificially high prices? So even though a bailout plan COULD work, it doesn’t look like the Paulson plan will.[/quote]

I think Paulson wants to balance between moving the toxic MBS out of portfolios of these companies to clear the clog for the short term while not overpay too much for these MBS so that tax payer still have a chance of breaking even for the long term.

But the goal won’t principally be for tax payer’s recoup of money, rather in the short term to overpay these MBS enough in order to support the survival of problem wallstreet firms.

[KIBU]

[quote] The Paulson plan doesn’t seem to be designed to benefit the tax payer. It looks like Paulson plans to purchase MBS’s at ABOVE their theoretical values. That doesn’t make any sense. How can you attract other bidders to the market if you’re going to enforce artificially high prices? So even though a bailout plan COULD work, it doesn’t look like the Paulson plan will.[/quote]

I think Paulson wants to balance between moving the toxic MBS out of portfolios of these companies to clear the clog for the short term while not overpay too much for these MBS so that tax payer still have a chance of breaking even for the long term.

But the goal won’t principally be for tax payer’s recoup of money, rather in the short term to overpay these MBS enough in order to support the survival of problem wallstreet firms.

[KIBU]

[quote] The Paulson plan doesn’t seem to be designed to benefit the tax payer. It looks like Paulson plans to purchase MBS’s at ABOVE their theoretical values. That doesn’t make any sense. How can you attract other bidders to the market if you’re going to enforce artificially high prices? So even though a bailout plan COULD work, it doesn’t look like the Paulson plan will.[/quote]

I think Paulson wants to balance between moving the toxic MBS out of portfolios of these companies to clear the clog for the short term while not overpay too much for these MBS so that tax payer still have a chance of breaking even for the long term.

But the goal won’t principally be for tax payer’s recoup of money, rather in the short term to overpay these MBS enough in order to support the survival of problem wallstreet firms.

[KIBU]

[quote] The Paulson plan doesn’t seem to be designed to benefit the tax payer. It looks like Paulson plans to purchase MBS’s at ABOVE their theoretical values. That doesn’t make any sense. How can you attract other bidders to the market if you’re going to enforce artificially high prices? So even though a bailout plan COULD work, it doesn’t look like the Paulson plan will.[/quote]

I think Paulson wants to balance between moving the toxic MBS out of portfolios of these companies to clear the clog for the short term while not overpay too much for these MBS so that tax payer still have a chance of breaking even for the long term.

But the goal won’t principally be for tax payer’s recoup of money, rather in the short term to overpay these MBS enough in order to support the survival of problem wallstreet firms.

[KIBU]

[quote] The Paulson plan doesn’t seem to be designed to benefit the tax payer. It looks like Paulson plans to purchase MBS’s at ABOVE their theoretical values. That doesn’t make any sense. How can you attract other bidders to the market if you’re going to enforce artificially high prices? So even though a bailout plan COULD work, it doesn’t look like the Paulson plan will.[/quote]

I think Paulson wants to balance between moving the toxic MBS out of portfolios of these companies to clear the clog for the short term while not overpay too much for these MBS so that tax payer still have a chance of breaking even for the long term.

But the goal won’t principally be for tax payer’s recoup of money, rather in the short term to overpay these MBS enough in order to support the survival of problem wallstreet firms.

[Author]

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