Author Topic: "Stock Injection Plan" a better alternative than the "Bailout"  (Read 1184 times)

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Offline c#minor

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This is a very interesting plan that could be an alternative to buying $400 billion worth of ... well ... shit. It was slipped into the Paulson plan as an alternative and it sounds good.


NPR article:  http://www.npr.org/templates/story/story.php?storyId=95395712    Look about halfway through and you will find "An Alternate Plan" and that explains the Stock Injection Plan.


Also there is a great radio show on the causes of the crisis and it talks about the Stock Injection Plan near the end.

This American Life:  http://www.thislife.org/Radio_Episode.aspx?episode=365

Offline drogulus

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Re: "Stock Injection Plan" a better alternative than the "Bailout"
« Reply #1 on: October 11, 2008, 02:50:54 PM »
This is a very interesting plan that could be an alternative to buying $400 billion worth of ... well ... shit. It was slipped into the Paulson plan as an alternative and it sounds good.


NPR article:  http://www.npr.org/templates/story/story.php?storyId=95395712    Look about halfway through and you will find "An Alternate Plan" and that explains the Stock Injection Plan.


     Prediction: It won't be shit. Most of the mortgages will be good, the securities that are based on them are poison now, but they have real value. The gov't is buying time until we find out what they are really worth, which a panicking market can't do. It's a question of the proper valuation of the securities. Actually I think this will work out reasonably well.

     The alternate plan is an alternative in search of a rationale, since the premise is wrong. Also, it's a rather transparent ruse for public (political) ownership of a substantial chunk of the economy, which is all you need to understand why this solution would be preferred by the gnomes of NPR, our shadow socialists in waiting. It reminds me of the conservatives whose every solution to economic problems is cutting the capital gains rate. After a while you get the idea that the cure for baldness is, well, you know..... :)
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