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What price to pay for distressed assets? | 15 comments (15 topical, editorial, 0 hidden)
Re: What price to pay for distressed assets? (4.00 / 3)
Don't fracking pay for distressed assets. Put the bankrupt financial firm in receivership, find the liabilities that you want to be able to discharge to keep the economy running, put enough good assets in place, starting with the firm's, to back those assets. If there aren't enough good assets, make it good with sovereign debt and take a preferential charge against the original firm.

Then send the original firm through bankruptcy and let the distressed assets be sold at fire sale prices to whomever wishes to hold them.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Wed Aug 26th, 2009 at 11:08:51 PM EST
Re: What price to pay for distressed assets? (4.00 / 2)
If only we could do that!

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Thu Aug 27th, 2009 at 12:41:12 AM EST
[ Parent ]
Re: What price to pay for distressed assets? (4.00 / 4)
The obstacle is political, not technical. Those who should be doing it don't want to.

It is being done to smallish banks, though. See the FDIC's failed bank list.

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma

by Carrie (migeru at eurotrib dot com) on Thu Aug 27th, 2009 at 04:26:37 AM EST
[ Parent ]
Re: What price to pay for distressed assets? (4.00 / 4)
This is the way it's always and everywhere been done. Why has it been resisted so universally for the past 2 years? (Yes, two years: the crisis started in June 2007, not in September 2008).

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
by Carrie (migeru at eurotrib dot com) on Thu Aug 27th, 2009 at 04:03:00 AM EST
[ Parent ]

What price to pay for distressed assets? | 15 comments (15 topical, 0 editorial, 0 hidden)
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