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Originally Posted by SANguru
give??? did you read the 110+ pages of the published plan? Dude it's a loan and the government if the assets are priced correctly will make money on this.
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Really? How is it a loan? The revised Emergency Economic Stabilization Act of 2008 (EESA 2008) that was recently passed by both the Senate and the House, and signed into law by the Pres provides (among other things) the Secretary of the Treasury with funds to purchase toxic mortgage-backed securities and other assets from financial institutions. With your deep background in all things financial, perhaps you can explain to us how this bill (now a law) is a loan. What are the terms of the loan, and what interest is paid to the Treasury at the maturity of the loan?
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Originally Posted by SANguru
Just look at the Bank of America deal with the Countrywide ARM's. I suggest reading the rescue plan in detail.
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I'm not sure what you're trying to say with this comparison. Could you elaborate on the B of A deal with the Countrywide ARM's because not all of us are financial experts. You're implying that you read the EESA 2008 in detail. Why don't you give us the "EESA 2008 for Dummies" version so we can understand the law.
I agree with MrLabGuy, there is nothing that mandates financial institutions to start lending again. It is the hope of the Treasury and the Fed that by removing toxic debt off their balance sheets, that they will provide credit to a market that badly needs it.