At least according to the media banter
It comes after the fact, but Chris Dodd has a plan of his own. I’m on the fence about the diversion of profits into the Hope Now plan, primarily because that plan doesn’t seem to be working as is (or you might have heard something other that pins dropping). Why dump money into a half-baked program – instead, return any profits to the Treasury as a dollar-for-dollar reduction in the facility cap. As for congressional appointees overseeing the process – garbage. I’ll bet they won’t find a single appointee that isn’t a political contributor, and that is what is really needed – financially-minded individuals that are truly dis-attached.
Mark Cuban thinks the assets should be auctioned on eBay. That isn’t really what he is saying, but a similar level of transparency, combined with competitive bidding from outside the Treasury’s pool of funds, is a brilliant idea. The equity position concept is already on the Treasury’s table, and it may be a done deal. I’m sure we’ll all soon hear what struggling banks think about it. When does the short sale ban end?
And Barry Ritholtz puts things in perspective – at dollar a
day second, it would take three centuries to pay back this loan. Ritholtz says bye bye greenback – the oil market certainly agreed with him today.
MORE: Democrats created the financial crisis? The Bloomberg headline is a misnomer – the article actually suggests they prevented others from stopping it. Not exactly cause and effect. And, looking back to circa 2005 is entirely shortsighted – you need to look back to 1995!
STILL MORE: The Whitehouse says they called the problem as early as 2001. The timeline seems accurate (and is dutifully referenced). Meanwhile, ask yourself why the Office of Federal Housing Enterprise Oversight (part of HUD) was supervising the workings of the what were probably the largest functioning home loan banks on the planet, instead of say the Office of Thrift Supervision. To find the answer, you still have to look back to the early/mid 90s.