While the Dodd plan may help to prevent forclosures, which may be helpful for the banks, especially those which don't know who their debtors really are and therefore can't make a deal with them, I'm pretty sure, it don't foresee an equity stake in the houses. Der Amerikaner ist die Orchidee unter den MenschenVolker Pispers
No, the treasury buys the mortgages at par and then the banks hope that the house prices reinflate so that the Treasury doesn't have to exercise its option. A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
But under the Dodd plans the equity is realised over months or years, and Obama can be blamed for nationalising the banks :-)
Under the Paulson plan, the Tresury simply loses money. A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
So if the economy doesn't run well the next 4 years, because of the mess that is, it will be blamed on Obama's socialism. Maybe the Dodd plan isn't that bad, as there is a scapegoat to prevent anti-capitalistic spin. I only hope Obama is really elected and the mess doesn't fall McCain on the feet ;-) Maybe I should change my signiture, but I think by now it are anyhow only the masochists left favouring McCain. Der Amerikaner ist die Orchidee unter den MenschenVolker Pispers
