tag:blogger.com,1999:blog-13164186.post340847631745761082..comments2024-01-27T19:26:32.604-05:00Comments on Bubble Meter: Buffett suggests improvement to TARPDavidhttp://www.blogger.com/profile/11169148764438565562noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-13164186.post-47823968597709938332008-10-03T14:39:00.000-04:002008-10-03T14:39:00.000-04:00"Million said...so that means they need to re-writ..."Million said...<BR/><BR/>so that means they need to re-write the bill, no?"<BR/><BR/>Maybe so the thing was there really was "no time to think". We had a financial ticking time bomb on our hands. We heard it ticking, but we couldnt see the clock to tell how much time was left - maybe a day, maybe a month - who knows. Rather than sit around and discuss the best way to dispose of it we did the most prudent thing - we cut the wire (pass something to show we are doing what we can - even a hint of leadership should do a lot to placate the credit markets).<BR/><BR/>Now that the wire is cut, we still need to figure out how to safely dispose of it (Paulson plan, buffet plan, whatever) but at least we have some time now. (not much but some). Mind you, its still going to blow up, we are going to have a recession, but at least now we can move it to a save distance before we detonate it - diminish the damage if you will.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-27415038645830852122008-10-03T13:35:00.000-04:002008-10-03T13:35:00.000-04:00so that means they need to re-write the bill, no?"...so that means they need to re-write the bill, no?<BR/><BR/>"Under Buffett's plan, Treasury would lend hedge funds, Wall Street firms or any other investors 80% of the price for distressed assets."<BR/><BR/>Roubini referenced the IMF's September report on 42 systemic banking crises from 1970-2007 that showed only 7 of the 42 had the Govt directly purchasing assets... and these were the most painful, drawn-out recoveries of the 42. the less painful recoveries had Govt financing the asset purchases... like Buffett's idea. <BR/><BR/>so to hear Buffett, whom the Treasury may deem worthy of acknowledging (maybe not), push for the Govt to loan money to the banks and investors as opposed to buying the garbage directly is a breath of fresh f*cking air. a form of this alternative was pushed from Day 1 but not even considered because there was "no time to think."<BR/><BR/>fear-mongering is a winning motivational tool and a sign of true leadership.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-80811700616488542212008-10-03T12:00:00.000-04:002008-10-03T12:00:00.000-04:00Great - if thats the solution then thats what we s...Great - if thats the solution then thats what we should do. Even under this plan, the money wont be spent for months. For the time being though, lets just pass this turd in a box. Pass it, and then poke it with a stick - put it on a napkin, allow a congressional committee to review it and determine "yes indeed it is turd". Then take that turd mold it into buffets plan, or Sorros' plan or Krugman's plan or whatever.<BR/><BR/>No matter what though, just take the first step. Congress, dont send another message of unbridled incompetence and uncertainty like you did on monday! Take your turd in a box, and show the world, at least we can do something. Tell us all, "my fellow americans, we got you a turd, and maybe much more" In any event, just take the turd and move forward!!!Anonymousnoreply@blogger.com