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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: saveslivesbyday who wrote (149337)9/23/2008 2:57:15 PM
From: NOWRead Replies (2) of 306849
 
So fess up: who were the clowns on this thread promising the taxpayer was going to get a great deal? Please dont make me read through old posts to point out your clear intent to deceive ...

Bernanke Urges Against U.S. Buying Assets at `Fire-Sale' Prices

By Craig Torres and Scott Lanman

Sept. 23 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke said the Treasury Department should buy illiquid assets at ``hold-to-maturity' values under its $700 billion rescue plan instead of at discounted ``fire-sale' prices.

The comments by the Fed chairman came in the form of an unusual break from his prepared testimony before the Senate Banking Committee today and are likely to feed the debate about what price the government should pay banks for bad mortgage- related loans.

``I believe that under the Treasury program, auctions and other mechanisms could be designed that will give the market good information on what the hold-to-maturity price is for a large class of mortgage-related assets,' Bernanke said. There are ``substantial benefits' to buying assets at a cost close to the ``hold-to-maturity' price, he said.

Analysts said Bernanke is essentially advocating that government use a pricing model that assumes that the debt will be paid in full over a long period of time. That is different from the mark-to-market model used by investment banks that prices assets at what they are worth on a given day.
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