Well he didn't actually use those words but his response to a question as to why asking for equity in institutions that sell assets to Treasury is a bad idea he responded - if we place these preconditions on the institutions they will not sell securities to the Treasury and that will affect the effectiveness the success of the program. Bernanke added if only one bank sold assets it wouldn't help establish a market price.
Much of the testimony so far has focused on "fire sale price" and the "hold to maturity value". Double speak!. These charlatans are trying to pretend that they will be paying some kind fair value for these securities. The "hold to maturity price" is nothing more than the "mark to make believe" price that is being employed by the financial institutions. In other words lets just take the loss and stuff it down the tax payer. In fact in later questioning he responded "we never said that we wouldn't pay above the mark for the securities"
This crowd can't even get their arguments straight. On one had they are arguing that the Treasury purchase will help create a market price therefore we want maximum participation therefore no pre-conditions which would make institutions less likely to participate. But then he goes on to say that he would pay more than the current "mark to market" on some securities. If in fact the Treasury is taking the position that they know what the right price is for these securities then what is the need for wide participation? Just tell the institutions what their securities are worth and force them all to mark to market at that price and take over the failed institution.
Bernanke was asked whether this was the solution and he responded that it was better than the "failed bank" solution but he never did say why and unfortunately no Senator asked him "why"
Senator Tester asked what I thought was great question "if we go down I can't imagine that all the countries wouldn't be hurt- so why are the other countries not stepping up to the plate. Couldn't even figure out what Paulson's reply was. He is beginning to make Greenspan sound coherent.