On Oct 7, 2008, at 3:21 PM, Jordan Hayes wrote:
> Where are you getting this certainty of doom?
>
> You really think that TARP has now saved us from "everything going
> under" ...?
No. Reduced to bullet points:
* Risks of a really nasty outcome are high.
* "Something" should be done about it.
* Given the current configuration of Congress and the Oval Office, the modified Paulson plan was the best something we're likely to get.
* Assuming Congress and the OO are about to be reconfigured, it should be possible to reconfigure the plan too.
A footnote: Barney Frank says the TARP legislation is deliberately worded to allow the Treasury to buy equity. So equity recaps, which have been proven by economists to more effective than assets purchases and which allow the Treasury some upside, can be done without any new law.
Doug