let me rephrase.
What percent of the asset market are mortgage backed securities? Until Treasury/Fed has a handle on it they are just throwing money at it.
Did the RTC legislation confer immunity on its managers the way Section 8 confers immunity on Paulson and cohorts? I see that povision as dangerously irresponsible.
[Sec. 8. Review.
Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency. ]
Toxic derivatives are toxic and illiquid because their valuation is unknown. The SEC did drop the ball in allowing these convoluted instruments.
“Toxic derivatives are toxic and illiquid because their valuation is unknown.”
There is only one way to determine and indeed create a value for anything and that is create a market for it. That is the part of this plan that makes sense. The government needs to grab these “assets” and put offer them for sale. I still think the BDs that hold these will become much smaller.
“The SEC did drop the ball in allowing these convoluted instruments.”
It needed to re-classify them on the balance sheets.