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To: SirJohnBarleycorn

There isn’t any bailing yet, because the bailout plan was predicated on the idea that we’d buy up crap paper at some higher-than-market price.

So: how do we go about setting a price for this crap paper higher than the market?

Get that one question and two economists into a room, and you can power the world off the futile effort that will be expended.

That’s why the bailout won’t work.


15 posted on 10/10/2008 10:27:11 AM PDT by NVDave
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To: NVDave

Your naive faith in this idea that a “market price” at any given point in time necessarily is the only or even the best measure of the value of an asset, without even considering the structural characteristics of the market in question, reminds me of those people who used to believe in a perfect, instantaneous efficent market hypothesis.


17 posted on 10/10/2008 10:36:17 AM PDT by SirJohnBarleycorn
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