I really worry that Cantor is unintentionally turning this bailout into a socialist plan. Buying assets is just that the US government buys the paper assets. It is not the government socialization of a market, but rather the government stepping in an buy in a market.
Now it seems Cantor want to turn this into a government insurance plan like FDIC. The government buy assets is a one time thing. A government back insurance of financial paper is an on going government program. We will have socialized some of the risk in the financial markets.
A government back insurance of financial paper is an on going government program.
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Two points. First, I am not sure that this is meant to be ongoing. They may mean it to be insurance on those securities already outstanding.
Second, based on your view FDIC is socialism so we already know what we are. We just don’t know the price ;-). To me, all free markets need some level of government oversight and I think FDIC has worked well in the past. As with the FDIC, this insurance would be financed with private sector premiums.
Just tell me straight up-do you want this or do you want a strqight out depression? Just be honest.