dd wrote:

> Not necessarily signing up to Julio's entire plan,

Much better than the endorsement of my plan I'm getting from Obama.

> but if the Treasury were to step in and pay the mortgages
> of all subprime borrowers, then the bonds would be money-good for the next 
> ten years, and the resultant
> mark-ups (which would be roughly the size of the markdowns already taken) 
> would go through the P&L account
> into shareholders' funds and that would recapitalise the banks (except to the 
> extent to which they had
> sold down the portfolio, which is quite substantial in some cases, in which 
> case it would be a windfall gain
> to the hedge fund industry).

And what would the hedge funds do with their windfall gains but plug
them back into the banking system, one way or another?
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