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February 03, 2009

Comments

Tim Webb

I think this program makes sense and we would like to know who will have access to these guarantees and what will be the requirements. Does anyone know?

fletch

to have a market you either need buyers and sellers to agree on a px and transact amongst themselves, or a profit motivated market-maker to make the px, using his/her own capital (like the "house" in Vegas for those who need an analogy), with buyers and sellers choosing sides based on level and volume. it really is that simple. the sooner uncle sammy stops trying to kick the can down the road, the sooner a market will form

KM

I love the fact that the "bad bank" idea pops up again. It's really no different from the original TARP - which failed b/c of the same problem - what level does the bad bank buy these toxic assets? If they buy them where they're marked, tax payer eats the loss. If they buy them at "market levels" bank takes the loss, and that is what they're trying to avoid. But fact remains, assets are overmarked, and until they write them down, we're not gonna have a solution.

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