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
