The Selling of the Bailout
Paulson did a poor job in the Senate hearings by exacerbating the public perception of bailout
as sinkhole. The bailout makes sense in the same way a vulture fund makes sense buying underpriced distress assets to hold for future appreciation. CNBC's Larry Kudlow explains the bailout as a win-win for the taxpayer - Treasury is buying troubled
assets at undervalued fire sale prices, say 20c on the dollar. The
Treasury / taxpayer still receives cash flow from the bonds, plus any
appreciation from future sale once the crisis stabilizes. He also explains his insights in the bailout negotiations over the weekend...
A word of caution about the news on CNBC. Never, never forget who sponsors CNBC. WALL STREET! I love to watch Mad Money and listen to Cramer's tirades. Sometimes the advise is OK.
Don't believe everything I hear on that network. The one thing I will never forget Cramer said recently. "Wall Street is full of crooks looking to take your money!"
Reply to this