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View Diary: Carnegie Mellon Professor: No bailout needed (305 comments)

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  •  Reasonable prices?? (0+ / 0-)

    What we should be lobbying for is not a "no deal", but a deal that ensures the government buys at reasonable prices, and gives taxpayers access to the financial upside.

    THE MARKET HAS ALREADY SET a market price on these assets!
    IT IS VERY LOW!
    In order for the government to IMPROVE the health of any of the firms holding these under-water assets, it would have to pay MORE for them THAN THE MARKET is willing to pay!  THAT BY DEFINITION is paying a premium, and is thereore paying AN UNreasonably high price!

    The other half of your suggestion is therefore the BETTER half -- buy stock
    in the companies and issue regulations to ensure that they will use the
    money acquired from the government investment to actually make their own
    situations better, instead of giving golden parachutes to executives while committing more of the same sins.

    "You can't nice these people to death."-- John Edwards

    by ge0rge on Wed Sep 24, 2008 at 05:52:30 PM PDT

    [ Parent ]

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