You can't repair these bad assets by buying them because they are having a contagion effect that's not being contained and the process is too cumbersome.
Soros is right, part of the answer has to be a direct equity investment - part one of about five or six. The hubris here is that Paulson can reshape the RMBS market without dealing with the fundamental flaws in the assets themselves, but the opportunity to do that has passed.
Nothing short of a massive intervention will work now.
On Sat, Oct 4, 2008 at 1:59 PM, shag <shag at cleandraws.com> wrote:
> i was following the conversations, but i never got a good handle on why
> people were opposed to the bailout. i am trying to see if i can sum of the
> various classes of argument, and you can correct me:
>
> for some, it was obviously that the bailout was crap because it wasn't
> radical enough. we should have used this as an opportunity to force wall st
> types and their lackeys in congress to make important changes to the system
> that would redistribute wealth downward.
>
> for some, it was that we shouldn't support the bailout because we should
> allow the crisis to happen and this would provide fertile grounds for
> radical social change.
>
> what were some other arguments?
>
> thanks.
>
> shag
>
>
> http://cleandraws.com
> Wear Clean Draws
> ('coz there's 5 million ways to kill a CEO)
> ___________________________________
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>
-- peace,
boddi
http://financialroadtosocialism.blogspot.com/