Saturday, September 20, 2008

Who Benefits from TARP?

Gretchen Morgenson raises that question, TARP standing for "Troubled Asset Relief Program" and it's an important question as knowing who benefits by getting our money is something we, the taxpayers, should be told. But even more important is to ensure that the troubled assets we buy are reasonably valued; there is no way we can afford to buy these assets at their 'book value', which bears no relationship to their true value.

And, of course, we must have some policing of the derivatives market. The first part of that policing would be to be able to explain these instruments in such a way that at least most MBAs could understand.

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