A few nonpartisan points about the current brouhaha.
1. The government bought Chrysler securities to boost the company back in the 80's. Some years later the government sold those securities at a profit.
2. The government bought Mexican government bonds (I think it was bonds) to prop up the Mexican government (in the early 90's?? I can't remember), and the Mexican government paid us back and the US government made some money in the deal.
3. The current crisis may turn out to be a small bailout or even turn a profit in that the mortgages the US government is proposing to buy are valued very low right now, but will increase in value once the market stabilizes. So the mortgages are not totally worthless. They can be sold later to reduce the loss or even at a profit if the market is right. Also, many of these mortgages are currently performing mortgages and are in no way in default.
So, in the end, I think the nation will be OK, but it should never have come to this in the first place.
2 comments:
If your scenario comes to fruition then whomever wins the Whitehouse will claim victory and since the Democrats control the legislative brance they will claim responsibility for the turn around even though it was the failure of the legislative branch that helped the problem along. Either one will be faster to take credit for the hopeful profit than the CEO's are in taking golden parachutes.
Very true, Brian. That near fall spooked some sense into you.
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