On 9/5/07, Doug Henwood <[EMAIL PROTECTED]> wrote: > On Sep 5, 2007, at 6:21 PM, Sabri Oncu wrote: > > > "I believe, and I think the president believes, that markets are > > very good at > > finding ways to solve problems," he said. > > What does this mean? These people use the word "markets" as if they > were machines. Some people will get thrown out of their houses, some
The White House is being either naive or dishonest. Any attempt to "refinancing" or "help the borrowers" would necessarily cause losses to some unfortunate holding the wrong tranche. The point is without a government bailout, *someone* has to lose money. No way around it. They really expect the "market" to produce volunteers to take losses? This raises the question of what the White House attitude towards Wall Street is. While the Republicans ideologically oppose taxes on private equity etc, it seems to be the Democrats who are speaking out the loudest on behalf of the financiers. I can imagine that the Texas oil crowd may want to bring the high-flying hedge-fund guys down a notch, but what about Henry Paulson and how does he fit into this? -raghu.
