A Better Bailout? « The Faded Mirror

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A Better Bailout?

September 25, 2008 at 4:38 pm | In Economics | 3 Comments

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?

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“the Paulson plan has all the political momentum”

ahhh how a few days a difference make

Comment by Robert — September 29, 2008 #

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Interesting thing I came across. Wanted to see your opinion jtk

http://video.google.com/videoplay?docid=-9050474362583451279&hl=en

Comment by Rick — September 30, 2008 #

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Yes — strange times we live in, eh? I’m still not sure what to think, although I noted in passing that the LIBOR rate hit a record high of 6.88%….

Sorry, Rick. I really wish I had time to watch your video, but I’m up to my eyeballs in some personal and work-related issues (not economy-related — this is all my own doing), and I have to severely curtail the time I spend online. So, this blog will be updated very infrequently for the time being. And, if you care to say a prayer for this humbled sinner, it would be much appreciated.

Comment by JTK — September 30, 2008 #

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