Going to the Source

Robert Waldmann

Ask Mr Obama.

Criticisms of the Geithner plan (including mine) focus on the no recourse loans from the FDIC which give private partners of the Treasury an incentive to over pay for toxic legacy assets.

In the plan as briefly described in a press release and interpreted here, there are two different programs. One an FDIC program to provide no recourse loans to encourage purchases of “pools of mortgages” (or is that of, for example, “pools of mortgages” but also more toxic derivatives of derivatives) and a separate program of private public partnership to buy any legacy asset in which “Treasury will make co-investment/leverage available “

Huh ? Is that co-investment or leverage ? If it is leverage is it of the form of a full faith and credit loan or a no-recourse loan or what ?

Damned if I can tell. Who to ask ? Where does the buck stop ?

I ask “What does “leverage” mean in “Partnering Side-by-Side with Private Investors in Legacy Securities Investment Funds: Treasury will make co-investment/leverage available.” Could this be a no recourse loan ? “

here at this absolutely awesome site where you can propose questions *and* vote on already proposed questions and Obama will answer some of the questions (I hope the most popular ones and I don’t expect mine to get answered). The site does have a twitty limit on characters which delights me when I am reading others questions and irritated me when I was trying to write mine.

my favorite so far “What I want to know is what are u doing for those that used to be middle income families but because they have lost their job are about to lose everything?? I say u should issue checks to all americans under a certain income.”
sassee, illinois ” I don’t like the “used to be middle income” but I do like the proposal (Bring back AFDC and for married parents in all 50 states too).

I also like the proposal for a national registry of vacant jobs. Selfishly, I want some measure of the US vacancy rate. The good old conference board index of help wanted advertising must be useless now that classified ads have been interentised.

update: New favorite question “What are we going to do to eliminate homelessness.”