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"We do not want to reward failure"..., 2008-09-28 23:06:14 | Main | ready the fiddles..., 2008-09-29 11:20:36 "the Treasury plan is a disgrace": Nouriel Roubini doesn't like the draft of the bailout: recapitalization – via the use of public resources – can occur in a number of alternative ways: purchase of bad assets/loans; government injection of preferred shares; government injection of common shares; government purchase of subordinated debt; government issuance of government bonds to be placed on the banks’ balance sheet; government injection of cash; government credit lines extended to the banks; government assumption of government liabilities. Only one of these alternatives has been considered in the past week, and in 42 past banking crises the purchase of bad assets were "the exception rather than the rule". The claim that this is the best way to help the financial system has "no factual basis or justification", "is a total rip-off", "a huge expense for the US taxpayer". The draft's warrant provisions - and this was before the conference call in which the Treasury explained how they'd go out of their way to limit tax payer exposure to the upside - are "a cosmetic fig leaf", "vague and fuzzy". It is "a disgrace" and "a bailout of reckless bankers, lenders and investors" that "does nothing to resolve the severe stress in money markets and interbank markets that are now close to a systemic meltdown", "socialism for the rich", "a scandal", a "Treasury scam". I guess it wouldn't have been polite to just say that after a week of hyperventilated posturing, congress has delivered nothing more than an FTD Crap Basket. :: posted by buermann @ 2008-09-29 01:10:19 CST | link Comments: I'm fading, fading... Pay me! Er, I mean it's time to bail out the market. Yeah. Or else I'll cut off my own head, run around in circles and get blood all over your carpet. And don't think you can use the head as a paperweight. Your claim on it is a third tier subordinated decapitation default swap. posted by Zomg @ 2008-09-30 07:53:27 | link go ahead, express that vague notion Name: Email: Homepage: Comment your turing test: