The Faded Mirror

The point is probably moot at this juncture, since the Paulson plan has all the political momentum, but this article explains my thoughts on the subject better than I have time for.  In short, the Treasury should be buying up the problematic loans themselves, not the securities that back them.   I especially liked this observation:

With congressional authorization, the Treasury could force the purchase of these assets through eminent domain and make an immediate payment of an estimate of the loans’ current fair value, which would then be later reviewed for adequacy by a judicial forum.

I’ve heard of eminent domain being used for a lot of things, but rarely in the owner’s interest.  But, when everything else in life seems to be running backwards, why not?