tag:blogger.com,1999:blog-43760047550106827212011-04-21T14:59:28.156-07:00Midas Watchhttp://www.blogger.com/profile/15602740381082822930noreply@blogger.comBlogger11100tag:blogger.com,1999:blog-4376004755010682721.post-39537602467094135162009-02-07T04:29:00.000-08:002009-02-07T04:37:22.639-08:00Today's Times indicates that the Treasury plan will include taxpayer-backed guarantees designed to induce private-sector purchases of toxic assets. This "inducement" must be fairly priced. Already, there are billions in vulture funds circling this area. The only equitable arrangement must include a fee for guarantees that gives the vultures a choice between buying a CDO at 60 for a 15% current yield or buying the same paper, government-guaranteed, at 90 for a 10% yield. Uncle Sam has to be mindful that the private market could gang up and offer low prices. $78 billion of our money has already been blown away by Paulson. Time to stop!<div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/4376004755010682721-3953760246709413516?l=midasw1.blogspot.com' alt='' /></div>Midas Watchhttp://www.blogger.com/profile/15602740381082822930noreply@blogger.com0