Friday, October 3, 2008

Subprime Skullduggery, Or The Selfless Civil Servant As Financial Terrorist

and the bombthrowers are doing their Weathermen-like job on Wall Street. All of this favors the election of the leftmost senator, and a lurch to the left such as would increase the power of many an official, which would be quite convenient for them.
"Note that by requiring the use of the mark to market rule, the government that required that subprime loans be made, is now requiring that they be written down to near zero values that Secretary [Paulson] is advising the Congress are much less than their real worth. After all, his argument in selling his plan to the Congress is that the government can hold the loans for a short while and then sell them into the market for large profits. But, unless and until the mark to market rule is rescinded, The government will be able to sell subprime loans only to nonpublicly traded companies. So, to unload these loans for the promised profits, the mark to market rule will [be] rescinded when it is in the interests of our government to do so. In essence, the U. S. Government has required banks and other mortgage lenders to make imprudent subprime loans and, under Paulson's plan, gets to steal them and later sell them for a profit. This is not a bailout. It is highway robbery."
quoted from here: #

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