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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: John F. Poteraske who wrote (1757)	10/2/2008 6:17:07 AM
From: mek42	Read Replies (2) \| Respond to of 34328

The REIT idea was kind of a raw idea - yes, some sort of market would need to be made. Perhaps the gov't could insure / guarantee a floor of some value to help inspire confidence. I don't understand what is going on enough to put a number here. My current understanding is that the riskiness / value of these things is not well understood thus the market is more or less non-existent. Thus, creating a market seems to be a solution. If the government can throw around $700B, they surely can say that all of these mortgage backed securities are now one big REIT of sorts and assign initial shares. The gov't could assign itself a number of shares so that the "NAV" is appropriately diluted from par to represent a fair assessment of risk. Even as an exercise, I think it would be good to discuss this idea and refine it here - if nothing else I'm sure at least some of us will gain a better understanding of what is going on which can only help us all. I do agree that this idea is far too simple and makes way too much sense for the gov't to actually implement it.