What is the chance of a quick Solution to the Sub-prime / liquidity crisis?
Saturday, May 31st, 2008George asked:
What are the chances that in order to solve the current subprime / liquidity crisis, the US Government will step in and BUY these CDOs at the current marked-down prices?
What are the chances that in order to solve the current subprime / liquidity crisis, the US Government will step in and BUY these CDOs at the current marked-down prices?
One could argue that such a move may on the one hand instantly clear-up the current liquidity crisis which has resulted from the sub-prime meltdown, while on the other (possibly) allow the taxpayer to benefit from the appreciation of the value of these deeply discounted assets as the mess clears and the economy improves.
What do you think? Is this likely? Is this a good idea?
Question posted courtesy of: Nathan
