Tag: Main Street

How Main Street Will Profit? (UPDATED)

In the world according to Bill Gross.

The premise is that the bailout is good for everyone – that may be true, otherwise you may wind up paying ten bucks for a gallon of gas. But the idea that the Treasury is going to buy assets at 65 cents on the dollar (that private parties are bidding 15 cents for), and squeeze a profit out of it, is disingenuous at best.

At worst, perusal of the comments on the WaPo op-ed would make you think the recent Pew poll that suggested 57% of the public favored a bailout is in need of a serious resampling.

MORE: A key point of the profit analysis is the “hold-to-maturity” price (Bill Gross’s “lengthy ownership of the assets”), while Warren Buffett says the Treasury should pay market price if they expect to stay in the green. ┬áThe banks won’t be liking that.