Anything that has the Paulson RMBS "bid list" is insane. Those securities are largely fraudulent - at least the ones WaMu holds. So naturally nobody is going to buy them.
Some kind of payment insurance program - like the thing Julio Huatao is proposing - is far-superior and far-cheaper.
I fear Dodd's bill is typical Democrat "let's make it better by just adding stuff" behavior.
On Tue, Sep 23, 2008 at 4:51 AM, Doug Henwood <dhenwood at panix.com> wrote:
>
> On Sep 23, 2008, at 2:12 AM, Michael Pollak wrote:
>
> But one essential thing seem to be missing: a deep and comprehensive new
>> regulatory power. Even if we leave out the details, isn't this the moment
>> to pass it?
>>
>
> I don't think there's time for that. Even in a much better world, figuring
> out a new regulatory order would be really complicated. You could probably
> add something about "systemic stability" to the Fed's mandate, but even that
> would take time.
>
> Doug
>
> ___________________________________
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>
-- peace,
boddi
http://financialroadtosocialism.blogspot.com/