Ander's Market Theories

[AnderL]

So the Hold to Maturity price that Paulson and Bernanke want to price everything at is going to be a magic number that these two are going to dream up in an auction when they place the first bid for a CDO. What they are saying is if they keep buying securities at this HtM price then the asset values stay high.

But does that reestablish trust in the housing market. I mean the assets that back these CDOs are still crap and floating in the market with little or no hope of returning any value. In fact they may offer negative value (cost to maintain, secure, demolish, taxes).

Sure this frees up credit and gets Wall Street rolling. I mean they shed the crap and move on like nothing ever happened. And the audacity to say that taxpayers should not get a stake in the firms that sell these assets because private investors will not want to compete with them on future profits. WTF!?!?! Fark private investors. If this is the bed Financials made they should lay in it suffer some consequences. And speaking for private investors we will participate in just about any venture for a piece of the pie. There are a lot of corporations in Socio-Capitalist countries that have taxpayer ownership and that does not stop investors from jumping in. Having it provides a level of security. Look at the US GSEs FNM and FRE... case in point.

Paulson is not mutch of a bullshit artist. This is pathetic.