TED Spread per ticker on Bloomberg TV is 3month bill 00.36 Libor 3month at 3.21x, thus we are at, per those numbers roughly 2.85(roughly)
Regards this plan working intermediate term in a real way, rather than via the pump pump that it will work so all buy stocks, charge charge discretionary consumer items and rush to buy housing.
This plan is on the one hand taking assets from americans but asking them to run up MORE credit debt and above re-inflate housing get into a huge bubble again---get out there and get deeper into debt america, you are our salvation.
i wish to hear views, i am in mulling phase.
But one of best observation i read lately was that the U.S. Government housing has become it new "gold standard".
Paulson has stated clearly, this is all about housing, we sink or swim on housing.
One person caught a video this weekend where Paulson was asked what if this doesn't re-charge housing just shouted back "Just Do IT!!".
In other words he is trying TO WILL this to happen, demand that it happen, and have no negative thoughts,"Just Do It".
In acting this way, he is, to me, demonstrating how dire the U.S. Economic system is in.
Greenspan in CREATING this housing bubble by doing everything in his power to promote it and USE the fact to JQP he had become the a Father Figure, the Wizard Man, was able to mumble on and on the beauty of home re-financing, and recommending ARMs, and the herd, fixated on their perceived Wise One, were frivolously/irresponsibly obedient and the scam artists leapt in with no restrictions---it was as neat as the lawless WildWest, and we broke records in corrupt/greed based capitalism.
So here we are, they are saying to save our economy , public start getting wild again.
In summation my comment is "This is all insane!!!!!!!!!":)
O yes, in terms of telling the congress this plan will work for taxpayer because we will in time be able to sell this Toxic Rubbish above the outrageous price we bought them is bold face LIE, or he is now NUTTY!!!
In 1989 Treasury bought real estate assets, this time Paper JUNK!!!
Those that compare this to 1989 need wake up, imHo. Max
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